Falling behind with your mortgage payments is serious, and you need to move quickly if you are being warned by the bank that they might foreclose on your home.
When it comes to ways to stop foreclosure Indianapolis residents have several legal options.
Stop Foreclosure Indianapolis Specialists
If you have had warnings about legal action from your bank, then you need to seek advice immediately to ensure that the bank does not start foreclosure proceedings.
Be wary of out of state companies that promise that they can negotiate with the bank for you.
Many of them will take money from you and then ‘begin negotiations’, only to fail and tell you at the last second that they cannot help you and that the only remaining option is bankruptcy.
It is better to have a realistic idea of your options from the start.
How Can You Prevent Foreclosure?
If you have missed just one or two payments then you might be able to get an agreement with the bank to make those payments and get the loan back on track.
If you are more than 90 days behind then the bank will likely want to have the full amount of the arrears paid, and raising that much money can be difficult for someone who is in a situation where they are falling behind on payments.
You should seek advice from House Counseling Agencies, and remember that if you are on a low income then you may qualify for legal aid. Be sure to take advantage of this to find out what your entitlements are.
For most people, the best options are:
- A short sale
- A cash sale
- A loan modification
Loan modification can work if you are confident that you are going to be able to keep up with the payments in the future and you act quickly, you may be able to get one of these.
You can request a settlement conference, and meet with the lender to work out a deal. Your lender is only required to attend one of these meetings.
If you default on a modification you are not automatically entitled to have another modification meeting.
If you are not going to be able to keep up with repayments, but you have equity in your property, then selling your home to a cash buyer to clear the debt and then use the equity to finance moving to a cheaper property could be a suitable course of action.
It is worth finding out what a cash buyer would be willing to pay for your property. You can request a discrete, no obligation quote from a cash buyer and assess your options.
Short sales are a last resort for people who are in negative equity but desperately want to avoid foreclosure.
Lenders will often accept them because even though they will lose money they will still get more from a short sale than they would from a foreclosure sale.
If you are behind on your home payments be sure to act quickly, and be realistic about your finanacial position so that you can get the best possible outcome given your circumstances.