Stop Foreclosure Fast! 7 Tips to Avoid Foreclosure at the Last Minute

Leaning foreclosure sign in front of a modern single family home on a cloudy cold day

You’re not imagining it—home foreclosures are officially on the rise throughout the United States.

Foreclosures occur when you’ve demonstrated a consistent inability to make your mortgage payments. Your lender can repossess your home because you’re not making payments. In addition to losing your home due to foreclosure, you may also need to pay your lender penalty money for a deficiency judgment.

This puts you under serious financial strain.

If you’re currently trying to avoid foreclosure, we know that you want to do everything that you can to protect not only your home, but also your credit and overall financial standing.

But with emotions already so high, we understand that it can be tough to think clearly.

This post will clearly outline the many different options that you have to stop the foreclosure process.

1. Negotiate with Your Lender

Depending on where you are in the foreclosure process, you may still be able to negotiate with your lender. This is even more likely if you have a history of good credit.

You may even be able to speak with your initial mortgage broker to ask how they can help you.

Learn if it’s possible for you to refinance your loan or restructure your debt plan is some way. You should write a hardship letter honestly and concisely explaining the reasons why you’ve been unable to make payments.

Lenders like Wells Fargo, Bank of America, and other big banks may be able to halt the foreclosure for 30 days under the Project Lifeline guidelines. If you qualify for this option, this could give you the time you need to right the ship.

2. Open Your Mail

Far too many people operate under the delusion that the way to avoid foreclosure is by ignoring all the mail you get from your lenders and banks.

After all, you know you’ve missed your payments—and being reminded of that only stresses you out even more.

What you don’t realize is that as much as half a year before the foreclosure process begins, your lenders start mailing you refinancing options. Open up the mail and see what they have to offer.

3. Explore Foreclosure Relief Programs

If you’re facing down a possible foreclosed home, certain government programs may be able to help you.

If you’re currently unemployed, you may be eligible for relief from programs like the Home Affordable Unemployment Program. You should also look into the Making Home Affordable Program, which helps those who have defaulted on home mortgage payments.

In some cases, these programs may be able to provide you with financial assistance for as much as one year.

4. Consider Filing For Bankruptcy

We know that filing for bankruptcy isn’t always your first choice.

However, depending on your current income level and financial situation, it may be the best one. If you declare bankruptcy, your debts don’t automatically disappear forever.

However, creditors will temporarily stop coming after you for money, so that you can get your finances back on track.

5. Speak with a Housing Counselor

It can be tough to understand your options when you want to avoid foreclosing on your home.

Getting in touch with a counselor from the United States Department of Hosting and Urban Development (HUD for short) can help you to sort through those options.

They’ll talk you through your legal rights, and present you with the best choices you have to stop foreclosure. They can even negotiate on your behalf when you reach out to a lender.

6. Get Real About Your Budget

The truth is that, depending on your current spending habits, you may be able to make some adjustments to stop foreclosure.

So many people simply don’t realize just how much they’re spending every month. Plus, if it allows you to keep your home, you should be more than willing to make cuts.

Sit down with your credit card statements and everyone in the home, and consider how you can cut expenses down to the bare minimum for a few months.

You should also take a look at any assets you have, like your car or even an art collection.

Is it worth selling these items if you’re able to keep your home?

7. Sell Your House for Cash

Another excellent option you have when it comes to avoiding foreclosure? Selling your home to a cash buyer.

Professionals like the team at Ashley Buys Houses will help you to get a quick cash offer on your home.

It doesn’t matter if your home is in poor condition—cash buyers are still interested in it. Look for a buyer that will give you the most money possible for your home. You can use the profits to pay back the lender.

You may even have enough left over to rent or purchase another home. Keep in mind that, most of the time, the lender doesn’t bother to report the house sale to other creditors. This means that your credit will remain intact.

Avoid Foreclosure and Protect Your Finances with These Tips

We hope that this post has helped you to better understand the many ways in which you can avoid foreclosure on your home.

Act as quickly as you can, get realistic and honest about your current financial situation, and speak with as many different experts as possible. You’ll have to make some serious sacrifices.

However, if you can keep your home in the end, they’ll all be worth it.

Need more financial advice? Considering refinancing your mortgage or investing in new real estate?

Ensure you make the right choices by relying on our up-to-the-minute advice and tips. Bookmark our blog to make sure you don’t miss out on the latest ways to save.