Being faced with foreclosure can be both terrifying and overwhelming. For homeowners wanting to fight foreclosure, and wondering about possible foreclosure alternatives, it is helpful to fully understand what the foreclosure process is and have some common questions about foreclosure answered.
Common questions about foreclosure
What is foreclosure? Most of us have a general understanding of what foreclosure is and the threat it carries. It refers to the legal process that allows a lender to repossess a home from a homeowner.
What should I do if I get a letter from my lender? After mortgage payments have been missed, the lender may send out letters to the homeowner. The homeowner should not ignore these letters and may be able to engage in a mortgage mitigation program by responding to the lender and providing income and expenses information to them.
Are there alternatives to foreclosure?
Possible alternatives to foreclosure for homeowners wishing to avoid the foreclosure process may be available. Possible foreclosure options can include a special forbearance, loan modification, partial claim, pre-foreclosure sale, deed-in-lieu of foreclosure, reversive mortgage or second mortgage.
Each foreclosure alternative option may be better for certain homeowners in certain situations. For that reason, it is helpful for struggling homeowners to understand what foreclosure is, know how to respond to threats of foreclosure and be educated about the different foreclosure alternatives that may be available to them.
Facing foreclosure can be frightening but struggling homeowners should not view it as inevitable. In some instances, it may be avoidable with the help of foreclosure alternatives they should be aware of.