Stopping Foreclosure Fast

Foreclosure is a stressful time for homeowners. Yet, you must make critical decisions about the future of your home. There's not much time and you need to act fast for the best resolution. Luckily, you do have some options that can stop foreclosure very fast. Read on to learn about techniques commonly used to stop foreclosure fast.

Refinancing Your Loan
A refinance to stop foreclosure can work in some in some situations. If you have ample equity in your home and a sturdy income, you may be a perfect candidate for a refinance payoff. This is when a bank finances a new loan, supplying the funds to pay off the initial mortgage plus any fees and penalties. By paying off the mortgage, you prevent foreclosure. If you have an adjustable rate loan that has recently ballooned, you might be an ideal candidate for a refinance loan as well.

Bankruptcy Filing

Declaring bankruptcy to stop foreclosure fast is a drastic measure and unless you have other reasons for the bankruptcy, it usually is not the ideal choice. Bankruptcy has many unfavorable consequences and can lead to even worse harm to your credit. It is true that bankruptcy will temporarily halt a foreclosure, however that only puts off the foreclosure process until a judge says that it can go forward.

Short Sales
In a short sale, you come to an agreement with your lender for you to sell the home for less than you owe. Of course, the bank isn't fond of short sales because they lose money on the deal. It is still possible to have them approved by negotiating directly with your bank. A quick warning - short sales might have an effect on your taxes because the IRS thinks of short sales as income..

Offering a Deed in Lieu of Foreclosure

You can offer the bank whats known as a "Deed in Lieu of Foreclosure" on the property. This boils down to turning back the home to the bank to avoid the foreclosure process. By giving back the property, you can attempt to avoid the stress of the actual foreclosure and the longterm damage to your credit. This may be a good option if you think that you can't afford the house and have no time left to pursue other choices.

These are just some of the techniques used by people to stop foreclosure fast. Its very important that you do something at the first sign you might fall behind on your mortgage. If you deal with the problem early on and work with your bank you may prevent foreclosure altogether.

Article Source: the-Articles.com

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Author: IreneParkdale

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