OpenOffer.com foreclosure Many homeowners fear the social stigma associated with foreclosure because it’s a stressful, time consuming process, badly damages your credit, and stays on your record for seven years. Fortunately, there are alternative options for struggling homeowners who want to keep their home or walk away from it easier.

A loan modification is one of the most popular choices for homeowners who are having trouble making their mortgage payments, but still have the financial means to do so. Obtaining a loan modification can be done by directly contacting your lender, and usually takes three to six months. If you have fallen on a temporary financial hardship this is a good option for you.

Refinancing is an attractive option if you want to lower your interest rate, your house payments, and shorten your loan term. However, very few homeowners have to option to refinance because they have no equity. If you are paying your bills on time, have abundant proof of income, and a good credit score, refinancing can be your foreclosure prevention solution.

Selected states offer the Emergency Homeowner’s Loan Program. This program loans homeowners up to $50,000 to pay housing debts. This loan will not have to be repaid as long as payments are maintained consistently for a set period. There is an extensive pre-applicant screening process and homeowners go through a randomized selection process according to www.nw.org.  If you are a homeowner in one of the twenty-seven sponsored states this could be a great solution for you.

A short sale is less damaging to your credit score, and some lenders pay homeowners up to $3000 to relocate. If you have a new place to live or a potential buyer lined up then a short sale could work best for you.

Bankruptcy, usually considered a last resort, is an option if you have a lot of outstanding debts. There are two different types of bankruptcy. Chapter 13 which sets up a debt repayment plan and allows you to keep your home, and Chapter 7 which clears debt and can prolong foreclosure proceedings.
Talk with your lender to find the best options for your situation!

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This is filed under Foreclosures.


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