Foreclosure is the biggest fear homeowners face. Not only you will lose your property, but it will also make a huge negative impact on your credit record. Local Wisconsin homeowners who are facing a financial challenge may find themselves in foreclosure.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few foreclosure prevention measures in Milwaukee that you can take to keep your home from foreclosure.
Foreclosure prevention measures in Milwaukee Wisconsin
These foreclosure prevention measures might not all work in your situation but we’re telling you about them so you can make the decision for yourself:
1. Pay off your mortgage / sell your property. The easiest and simplest way to get rid of the foreclosure is to pay off your mortgage debt. After all, this is what the bank wants. If you pay off your debt, you both get what you want – the bank will get the money, you will get to stay in the house. Of course, this isn’t always possible, which is probably the reason why you’re facing foreclosure in the first place.
2. Work out a deal with your bank. Often times, the bank is willing to make a deal with you so you can talk with a specialist and find a way to modify your mortgage. One of the most commonly used options is to make a deal to spread your payments so they are lower every month. Just be sure that the deal is corresponding to your possibilities, as you wouldn’t want to go through everything once again.
3. Do a short sale. A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off your outstanding amount with the bank. This keeps a foreclosure from impacting your credit score and it gets the bank off your back!
4. Give your deed in lieu. One more common option is to make a deed-in-lieu-of-foreclosure. In other hands, you will hand over the deed to your house to the bank and they will agree to not put you through foreclosure. This won’t work unless your house is worth approximately the amount you owe on the mortgage. If it’s the other way around, the bank can still pursue the difference.
5. File for bankruptcy. In some ways, a bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process has to stop so it’s still a foreclosure prevention measure.
If you’re not sure which one to do, consider this: If you can afford payments and you want to stay in the house then a foreclosure workout arrangement (#2) is probably your best option.
If you want to put everything behind you and move on with your life then consider selling your home and paying off your mortgage with that money.