All About Stopping Foreclosure In Northwest Indiana

By Kimberly Cooper


The financial situation of a consumer can change over time. For instance, a person may lose their job due to downsizing. They may also have more kids and medical bills to tend to. These financial obligations or circumstances can make it difficult for the average person to continue honoring their debt obligations. Some homeowners may have their property repossessed when faced with any of these financial hardships. To avoid foreclosure in Northwest Indiana, you need to consider all the available options.

When you miss a couple of mortgage payments, your lender will issue a notice of default. This is simply a warning notifying you of the default. The notice will also give you a certain number of days to make up for the missed payments. If you fail to make up for the missed payments, the property will be put on foreclosure listings as the lender begins the process of repossessing it. To avoid losing your house, consider looking for the necessary funds to make up for the default.

When the lender repossesses your house due to default, you will lose all the equity you might have accumulated in the property. For instance, if you had paid half of the mortgage amount, you will lose all that equity. That is why you need to figure out ways to prevent the bank from repossessing the property. Consulting experts in the industry is highly recommended as they will give you recommendations on how to put a stop to the process.

You can decide to become bankrupt to prevent the bank from taking your home. By applying for chapter 13 bankruptcy, the court will prevent creditors from taking any action against you in a bid to recover their debts. This means that you can retain your home for the entire duration of the bankruptcy proceedings. However, filing for bankruptcy will damage your credit. However, you will preserve your equity and retain your home.

If you have defaulted on your mortgage and have no hope of making up for the missed payments, you can consider short selling the property. This is the process of selling the house at a price lower than the outstanding balance. While you will lose both your equity and home, you will be able to preserve your credit. This is the best option for people who have recently bought a house.

Short selling the property is a great idea for stopping foreclosure if your equity is minimal. If you have just refinanced the house to get a loan to spend on something, refinancing is highly recommended. This will help to protect your credit.

Mortgage refinancing is always an option whenever you want to avoid losing your home to the bank. By refinancing to reduce the amount of money you pay every month, you can make it possible for you to service your mortgage. However, the repayment period will be increased to increase the number of installments. There are many lenders that can refinance your mortgage.

The moment you start having difficulty servicing your mortgage, consider selling the house. This will help you recover all the equity. You might even make a profit and avoid foreclosure at the same time.




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