Nadel & Ciarlo, P.C.

Try these alternatives to foreclosure if your home's at risk

Foreclosures can be terrifying. You could lose your home, a place where you raised your children, had many of your major life moments and have planned to stay. Fortunately, a foreclosure isn't the only option you have.

There are several alternatives to foreclosure that you can try. The very first thing you should try to do is to bring your payments current. You should pay the lender the full amount due and any back payments, fees or fines if possible. You can get your mortgage reinstated up to a day before the foreclosure sale. There are a few ways to get the money to do that, whether it's getting another job, borrowing from a credit card or selling items you own. Whatever you do will likely only be a temporary fix if your finances are that tight, so consider using an additional alternative while you are current on your debts.

Another thing to do is to rent out your property. If your mortgage is low enough to bring in a profit when you rent the home, this helps you not only pay down the mortgage faster but also keeps your home out of foreclosure.

A forbearance may be an option for some people who are struggling to make their payments. With a forbearance, you pay a certain portion of your payment and potentially nothing at all for a specific amount of time. At the end of the forbearance, you begin making normal payments once again.

Finally, a bankruptcy can help you avoid going into foreclosure. Homes may be exempt, or a portion of the value of the home may be exempt, depending on what kind of bankruptcy you choose. Your attorney can help you pick the right bankruptcy for your situation and explain what exemptions you qualify for.

Source: Your Home 123, "8 Alternatives To Foreclosure," accessed Jan. 17, 2017

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