Receiving a foreclosure notice from your lender is sure to turn your life upside down. But before you pack your stuff and prepare to leave, it's important to note that there are ways to save your home from the foreclosure process.
It's not always easy to stop foreclosure, but there are steps you can take to successfully do so. Here's where you should start:
- Review your foreclosure notice: This will outline everything you need to know about your current situation, including the steps you can take next.
- Understand what went wrong: You know you're behind on payments, but that doesn't mean anything if you don't know the specifics of your situation. How many payments have you missed? How much money do you owe, including interest, fees and penalties?
- Talk to your lender: Don't assume that your lender is chomping at the bit to repossess your home. They're willing to hear you out and help you stop foreclosure, but you have to show them a willingness to take action.
After you take these steps, you'll better understand your situation and what comes next. Even though you're not out of the woods, you should at least have a better idea of what you can do to remain in your home.
If you've tried everything and have yet to settle on a solution, look into bankruptcy and how it can improve your situation. The automatic stay will kick in once you file, which stops the foreclosure process for the time being. This may buy you the time you need to assess your situation and formulate a plan for staying in your home.