Few circumstances are as distressing to families as the looming threat of foreclosure. Your home, which you not only own but also cherish, has been a valuable asset in your life. However, unfortunate events may now make foreclosure appear inevitable.
The burden placed upon local families in GA who are confronted with foreclosure can be nearly insufferable. To exacerbate matters, the foreclosure procedure itself can prolong the distress for months or even years, extending the agony far beyond anyone’s desires.
Thankfully, there are numerous options at your disposal here in GA, potentially more than you may be aware of. You can explore various legal strategies to avoid foreclosure in Columbus, enabling you to address the issue and move forward with your life. These strategies are designed to help you navigate the foreclosure process and find a resolution.
Within this blog post, you will discover three effective approaches to evade foreclosure (while acknowledging the existence of other potential methods). These strategies aim to assist you in legally and ethically circumventing foreclosure, thereby alleviating the distress and frustration you currently endure. By implementing these strategies, you can minimize any long-term financial obligations or encumbrances. It is important to note that not all of these strategies may be applicable to your specific circumstances, but you are likely to find at least one of the three methods that can be effective in your situation.
Strategy #1: Work out a deal with your lender
The initial strategy is commonly known as a “foreclosure workout.” This involves engaging in a discussion with your lender, expressing your inability to meet the current mortgage obligations, while expressing your desire to find a mutually agreeable solution that allows you to remain in your home and continue making mortgage payments.
Contrary to common misconception, lenders typically do not seek foreclosure as an ideal outcome. Instead, they prefer to maintain a positive relationship with homeowners who fulfill their mortgage obligations. As a result, lenders are often open to collaborating with homeowners to reach a viable agreement. This could involve temporary relief from mortgage payments, implementing a catch-up plan to gradually repay outstanding amounts, or restructuring the owed balance to facilitate manageable payments. The objective is to find a solution that enables homeowners to overcome financial challenges while maintaining their commitment to meeting mortgage obligations.
Strategy #2. Bankruptcy
While it may be perceived as a drastic measure, filing for bankruptcy is considered one of the available options in your toolkit to avoid foreclosure. By initiating bankruptcy proceedings, you communicate to all your creditors that you are currently unable to meet your financial obligations. Filing for bankruptcy imposes an automatic stay on the foreclosure process, requiring all creditors to halt collection activities temporarily. This provides a breathing space and an opportunity to explore alternative solutions to address your financial difficulties and potentially negotiate a more favorable resolution.
Indeed, it is important to recognize that filing for bankruptcy is a significant step, as it may entail the sale of assets to fulfill obligations to creditors. Furthermore, a bankruptcy filing can have long-term implications on various aspects of your financial life. It can significantly impact your credit score, potentially affecting your ability to obtain loans, secure favorable terms for a car purchase, or even impact your job prospects. Therefore, it is crucial to consider bankruptcy as a last resort rather than a primary defense strategy. Exploring other foreclosure avoidance options before considering bankruptcy is advisable in order to minimize the potential consequences associated with this course of action.
Strategy #3. Short sale help for a foreclosure in Columbus
A short sale is the third strategy — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It’s fast — in some cases, you can sell your home in as little as a week! That’s also because it’s local: You can get help for foreclosure in Columbus since organizations like Flagship REI help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options.