There are some very powerful strategies to stop foreclosure. You need to be familiar with these strategies and decide which one is best for you and your situation.

Here are 5 Ways to Stop Foreclosure

1.Bring the Loan Current

If you have resolved the situation that got you into foreclosure, you can bring the loan current with the lender and reinstate the loan. This method requires you to have the income to support the monthly mortgage payment. It usually requires you to make a lump sum payment for all or some of the missed payments in order to reinstate your mortgage. You need to work with your lender and ask for a reinstatement.

2.Work out a Forbearance Plan

If you don’t have the money to reinstate your mortgage, your lender may allow you to enter into a forbearance plan. This is when the lender agrees to suspend payments or agrees to accept partial payments for a limited period of time. At the end of the agreed time period, you will then be required to make full mortgage payments again and work with the lender to reinstate the mortgage.

3.Sell to a Cash Buyer

Cash buyers can buy houses fast. They can buy fast and close before the foreclosure auction occurs and buy the house in its current condition. This means they are not going to ask you to fix any problems with the house. Keep in mind these cash buyers are looking for a good deal, so this only works if there is equity in the house. You don’t need a Realtor here, you can find cash buyers by searching the internet for local investors who advertise “we buy houses”. The process is fast because you are working directly with a buyer who does not have to wait for a bank approval, home inspectors, or appraisers. Cash buyers can close fast and get the deal done.

4.Sell through a Short Sale

If you owe more than the house is currently worth, then you are in a short sale situation. A short sale is when the current value of the house in “as is” condition is worth less than what is owed on the house. The key is that the lender must agree to accept less than what is owed on the house. There are many investors who specialize in buying houses that are short sales. It is quicker to work directly with an investor because they are the buyer. A Realtor needs to find a buyer before the negotiation with the lenders can start, prolonging the process. The investors will negotiate with the lenders to get an agreed upon payoff for the liens. Banks agree to a short sale because it ends up costing them less than if they had to take the house back through a foreclosure.

5.File for Bankruptcy

Bankruptcy is usually the last resort for homeowners. If you are considering bankruptcy, speak with an attorney that specializes in bankruptcies to make sure it is a good choice for you. Keep in mind that less than 10% of people who file bankruptcy make it through the entire process. If you are not able to keep up with the bankruptcy payment plan, you will end up back in foreclosure.

There are many homeowners in a similar situation to you. You have the choice to stop foreclosure by taking action. Know what your choices are to determine what is best for you and your situation.

Author Bio: For more information about the 5 Ways to Stop Foreclosure plus 2 BONUS Methods, go to http://www.SellMySeattleHouse.com and get your FREE eBook “Warning: Only Read this if Foreclosure is Imminent”

Category: Real Estate
Keywords: Foreclosure, stop foreclosure, avoid foreclosure, prevent foreclosure, save me from foreclosure, loa