No matter how long you've lived in Kentucky, the ebb and flow of the local and national economy has likely caused you financial challenges at some point. Perhaps, after you purchased your home, money was a little tight. After all, a move-in cost is always a bit higher than the projection, right? As time went on, hopefully, you were able to gain control of your finances and develop a savings routine. Several years later, you began to struggle again when your spouse's income unexpectedly took a nosedive.
Many of your own neighbors probably can relate to your on-again-off-again financial situation. Some may even be standing where you are now: worried about a foreclosure threat. After all your hard work making your house your home, the last thing you want is for a lender to obtain ownership because you were having trouble meeting your mortgage payments.
Ideas that may help avert the process
A key factor to remember at times like this is that threat of foreclosure does not necessarily mean there's no way out. In fact, many times, people facing serious financial crises have several debt relief options available to them. The problem is they are not aware of their choices. The following list is comprised of several ways you may be able to mitigate your circumstances:
- Personal discussion may lead to solutions: You can go one step further than receiving correspondence by mail that informs you of your risk for foreclosure. You can call your lender and ask if there are alternate solutions available so you can keep your house and your lender can get paid. Lenders are often willing to compromise and allow temporary payment plans because foreclosures typically cause them a lot of extra work.
- Find a buyer: After filing a Notice of Deferral, your lender may place your house on the auction block. To avoid the negative long-term ramifications of having a foreclosure on your credit report, you may be able to find a buyer who agrees to purchase your home in a short sale. If you inform your lender of a potential buyer, your lender must consider the sale.
- Immediate debt relief: Do you know if you file for bankruptcy, the foreclosure process comes to a halt? Many Kentucky residents shy away from researching such options because of the negative stigmas they believe are attached to the bankruptcy process. However, you may find that choosing one of several types of bankruptcy available is the best solution to your particular foreclosure problem.
You can reach out for guidance if you're unsure which route to take to overcome your current financial crisis. Temporary money problems do not automatically have to lead to permanent financial demise.
An experienced debt relief attorney is a great asset to have on hand when exploring ways to overcome an urgent financial problem that includes possible foreclosure.