What do you do when your house isn’t foreclosed on and you have to wait to move on with your life?
Use Bankruptcy Laws
You can use the bankruptcy laws to renegotiate your payments and keep your house. This would be a Chapter 13 bankruptcy.
Sell the House
You do own the house, even if you are late on the mortgage payments or the Homeowners Association fees. If the sales price of the home is enough to cover the amount of the mortgage and any HOA fees, selling the house could be a reasonable option.
Move Back In
If the house is in foreclosure, and you are living in it, you will still need to be evicted legally. You could think of it as a free place to live until then. It is common for people to take the extra cash flow and use it to pay their other bills.
Working on your credit after a foreclosure eviction is important, but it’s even more important to go into it knowing how a foreclosure will appear on your credit report, says Carla Blair-Gamblian, a credit consultant for the Lighthouse program, a program dedicated to helping veterans and active-duty service members with credit problems.
Long before a foreclosure eviction, stay current on how quickly your lender is selling the home, Blair-Gamblian advises. Not all foreclosures take as long as the national average of 572 days. Some can take three to four months, and others can take two to three years.
It’s daring advice, but worth considering. You couldn’t ignore the stress that might be involved with this choice, though. Eviction, even when it is a planned event, can be very upsetting. Good planning for this approach would be having your nice furniture and belongings in storage, with only a minimal amount of personal property in the home.
It’s frustrating, and you need to find a way to turn it to your advantage.
This is a good reason why foreclosure mediation is invaluable! Phone Axsmith Law LLC if your home is in foreclosure, or you need help with foreclosure mediation or debt relief at (202) 285-5415.