When you own a home or any kind of real estate, something you have to be aware of is the possibility of foreclosure. Foreclosure is what happens when a home or real estate is seized either by the state or the bank because the homeowner couldn’t keep up with payments due on the property. Once foreclosure is completed, the home or property is sold at a foreclosure auction. This can include a failure to keep up with mortgage payments, or an accumulation of delinquent property taxes, just to name a few examples. This article will look at a few of the ways you can avoid foreclosure on your home.
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- Declare Bankruptcy: One way to avoid foreclosure on your home is to speak to a foreclosure attorney and declare bankruptcy. Entering bankruptcy, according to HGTV, stops any foreclosure proceedings immediately, because the law prohibits debt collectors from moving forward on someone who is going through bankruptcy. However, while bankruptcy halts the foreclosure process, it only works as a temporary solution because a method of paying what is owed on the property will have to be worked out somehow.
- Go Through Loan Modification: If foreclosure is happening due to being in default over a loan you took out on the home or property, another way to avoid foreclosure is to go through loan modification. As the term implies, loan modification modifies the terms of the loan, usually to adjust the payments that need to be made in a way that makes it more affordable for the debtor. By negotiating a payment plan, debtors can often hold off foreclosure proceedings by demonstrating that they are able to pay back what is owed.
- Set up a Payment Plan to Pay Delinquent Property Taxes: A third way to avoid foreclosure is to set up a payment plan to pay delinquent property taxes. Once you know that you cannot pay on time, you need to talk to the officials in charge of collecting property taxes and talk to them about arranging a payment plan that you can afford. Contrary to what some may believe, these officials want to help if they can, so if you come to them and ask for help, they’ll be able to help in some way to make sure you can pay your property taxes.
In conclusion, there are several ways you can avoid foreclosure on your home or property. These ways include, but are not limited to, declaring bankruptcy, going through loan modification, or setting up a payment plan to pay delinquent property taxes. These are just a few of the things you can do to avoid foreclosure, your plan of action will largely depend on how you ended up at risk of foreclosure.
