Foreclosure is the legitimate process through which a lender tries to get back the balance of the money issued temporarily to a borrower, who ceases to make partial payments as agreed, by forcing the sale of the property used as collateral for the lent money. The people conducting the purchase must follow the right procedures according to the law, and court orders. You do not have to worry anymore about the loss of property to the moneylenders as there are various ways to stop them from selling or even taking away your property. Below are the steps to take so as to avoid foreclosure.
File for in debts
In cases where you are at a risk of foreclosure, you can file for bankruptcy to secure your property. By doing so, you are assured of safety as the bank hinders the lenders from acquiring your property, and issues a statement on your state at that particular time. As long as the lender does not take a step to remove the hold, they cannot take control of your house or any other asset as long as the bank’s order remains valid. Bankruptcy may be a disadvantage to some people because it comes with high-interest rates which may be hard to pay considering that you are already in debt, and you may also take longer to file for another, even in cases where you face with difficulties.
Apply for a credit modification
In cases where you are at a risk of foreclosure, it is advisable to request a loan modification before the closure of your house, or sale of your property. As long as you make the partial payments as agreed, you achieve security and the credit modification aids to prevent foreclosure.
Charge your lender legally
It is easy to charge a lender who fails to follow the right procedures while conducting the foreclosure. In case one fails to pay their debts, the banks should always follow the constitutional procedures to sue them before they sell their property or even conduct a foreclosure. Suing a creditor can, however, be challenging because the court proceedings may be expensive, and hence adding more burden to you. Besides, the process may also be demanding and at times less efficient in cases when you do not have valid or enough evidence to support your claims against the lender. As a result, you should gather sufficient evidence against the bank, giving details of whether they provided their promissory notes as it should have been.
In addition to that, you can sue a lender by presenting claims of their failure to follow the right channels while conducting the foreclosure. You can as well present claims in the court of the creditor’s violation of the house owner’s bill of rights, and as a result, this can delay the procedure of foreclosure. Lastly, to avoid exclusion, you can as well accuse your lender of presenting other erroneous claims that violated your rights. By doing so, the court is likely to stop foreclosure hence giving you more time to make your debts.