Most people facing foreclosure fear they are out of options. Contrary to popular belief, there are actually over a dozen ways to avoid foreclosure when faced with it.
In a similar article, we wrote about alternatives to short sales, where we discuss foreclosure as one of the alternatives to a short sale; as such, a short sale is also an alternative to foreclosure.
For sake of this publication, we will discuss three options we feel must not be overlooked. For a free list of all alternatives, leave us a comment below and we’ll email you one promptly.
- The service members civil relief act: is available for service persons who are facing financial distress due to deployment. There are major benefits some of which can even help the spouses of deployed service personnel. For more information on this act please read the SCRA document.
- Refinance – Homeowners with lots of equity may refinance the home to better terms and avoid Foreclosure.
- Mortgage / Loan Modification – many lending institutions have options to modify the payments of a loan in order to keep the asset from foreclosing. While some may be unsuccessful at this tactic, we’ve seen it work first hand for persons in foreclosure.
There are many more alternatives to foreclosure we can discuss, for a comprehensive list please leave a comment below and we’ll get one to you directly. If you are interested in finding out all of your options to sell your home, including how long it may take to recoup your lost equity, please complete our free Short Sale Calculator.
Photo Credit: Mike Licht, NotionsCapital.com cc Licensed
People do need help and advice to help with avoiding foreclosures. It can be an extremely stressful time and a lot of people aren’t well informed. The banks are, at least in the UK, going a little easy on foreclosures. They know they won’t get the money back from a quick fire sale so are better helping people refinance where possible.
@LauraC Agreed.