Strategies to Stop Foreclosure the Last Minute

If you have got a mortgage, there is no surety that when you would need to face the situation of foreclosure. Though no one wants to face this situation, but the exigencies like loss of job, unexpected illness, uncontrolled expenditure and more can make you stand at the point where you see only the foreclosure. If you have received the notice for foreclosure and are sure that you would not be able to bring your mortgage payments up-to-date, you are definitely going to get panicked. But, let's tell you that still, there is a hope and you can stop the foreclosure. Real estate agents use a number of ways to stop foreclosure in Houston that you can follow to come out of the situation.

Below are the strategies that would help you stop foreclosure even at the last minute. It is necessary for you to know these strategies even if there are no chances of the foreclosure because the emergency can arrive anytime.

• Loan modification

It is the option that you can go for at the last minute. It is also known as refinancing. Actually, when you miss one or more payments and there is the fear of foreclosure you can apply for the loan modification. In this, the amount you owe on your mortgage is modified into a new loan with some amendments, like the amount of the monthly payment or the interest rate can be reduced.
Loan modification is a good option if you are clear that you can bring your finances back on the track and would be able to make the payments on time. The process of loan modification is easy and it will keep the foreclosure stopped until you miss your loan payments again.   

• File for Bankruptcy

Filing a Bankruptcy is the most preferred option when it comes to stopping the foreclosure at last minute. Upon filing a bankruptcy, the court will put your foreclosure on hold by issuing orders of the automatic stay. According to the bankruptcy laws, all the attempts made to collect the debts are halted once the bankruptcy is filed. And as foreclosure is the process for obtaining debts, it is put on hold if the bankruptcy is filed. 

However, you lender may file a motion to lift the automatic stay but even if it is granted, the foreclosure will be delayed for a few months. This will give you the time to go for other possible options. Also, you need to be clear that which bankruptcy you should file. If you want to save your house, the Chapter 13 bankruptcy would help you with that and if you just want some more time for arranging funds, the Chapter 7 bankruptcy would be the right option. 

• File a Lawsuit

It is required in a majority of the states that the foreclosure should be processed through the court. In the case, your lender is going with the foreclosure without following the laws or without going through the court, you can file a lawsuit against him. In the case your lender is not able to provide you the proof that he holds a promissory note on your mortgage, you can file a lawsuit against him. However, you would need a proof that your lender is at fault. 

"Last but not least, if due to any reason, you are not able to stop the foreclosure by the above-given ways and are looking for help, you can contact Caroline Allison for Houston foreclosure defense. She is an experienced foreclosure agent who uses the best ways to help the homeowners deal with the foreclosure. "