If you’re struggling to keep up with mortgage repayments, your lender may resort to foreclosure. Unfortunately, a foreclosure can have an adverse impact on your credit score and likely hinder you from purchasing a home for years to come. But we have some good news – you can prevent a home foreclosure in San Antonio! Here are some steps that you can take:
A loan modification is a way to prevent home foreclosure that entails altering the terms of your original home loan. Typically, most of the interest and back payments that have accrued will be added to the back of the mortgage. That’s often done by extending your repayment term or lowering the loan interest rate to get the payments lowered. But note that this option should be explored early on in the foreclosure process.
File for Bankruptcy
Filing for bankruptcy is an excellent way to prevent home foreclosure immediately. Once you file for bankruptcy, you’ll get an automatic stay, which prohibits the lender from foreclosing your house or otherwise trying to collect their debt, at least temporarily. In many cases, you can file for Chapter 7 bankruptcy to delay the foreclosure for some months or file for Chapter 13 bankruptcy to save your house.
Deed in Lieu
For a deed in lieu of foreclosure, you’ll surrender your home’s deed to the lender, and in exchange, the lender agrees to release you from the current mortgage. You’ll have to leave the house and relocate, but the lender won’t continue with the foreclosure process. Note that this is typically considered the last resort after you’ve tried other options.
Want to Learn More?
There are different ways to prevent a home foreclosure in San Antonio. But keep in mind that acting fast is paramount, and you may be able to save your credit rating and your home. For more information about how to stop a home foreclosure in San Antonio, reach out to our team of pros at 210-446-9902 today!