Many U.S. citizens hope to own a home now or in the future. Yet, the rising cost of living often prevents people in Texas from being able to afford their house. Bills begin to mount, and calls from lenders become more frequent. In some situations, foreclosure is unavoidable.
Foreclosure is the legal action by a lender to take property from the current possessor. The homeowner has been unable to pay the bills, allowing the mortgage company to repossess the house in lieu of further payments. Similar to bankruptcy, there is a negative social stigma attached. The borrower has failed to honor their promise to pay. Moving out of the home is the last stage of the process.
There are things that one can do to prevent foreclosure. Owners may not know about these actions that can help them keep their homes. For example, requesting forbearance is possible. The lender may be willing to allow the person to remain in the home for a period without paying. Afterwards, the owner usually has to continue making regular payments. There is also the mortgage modification option. Lenders can allow delinquent owners to extend the overall mortgage period in exchange for lower monthly payments.
Because foreclosure has such a damaging effect on a person’s credit, it may be wise to speak with a bankruptcy lawyer when unable to make home payments. A lawyer might help decide the best way to deal with the problem of a late mortgage. They can also help negotiate with the lender. Often, it is easier for an outside party to request a change in the mortgage terms.
Source: FindLaw, “Alternatives to Foreclosure,” Accessed on Jan. 19, 2015