Before you charge ahead into stopping your foreclosure, be sure you take an objective look at your particular situation. Avoiding foreclosure (or at least saving your credit) largely depends on your income and whether or not your circumstances are permanent or not.
Your Circumstances, Temporary or Permanent?
As you will find on this blog, there are numerous options for avoiding foreclosure. Selecting the right solution for you depends upon your circumstances. The most important circumstance is whether the events that lead to your delinquency are on going or whether they are temporary. Temporary circumstances are great candidates for solutions that involve a Work-Out with your lender. If your circumstances are on going, and not likely to cure within a known period of time, then the alternatives to a work-out with your lender are your best options.
Income
Your lender will want to see your income so that they can evaluate whether you have the ability to repay your delinquent amount. If you are asking your lender for a workout solution where you keep your home, then your records of income should substantiate that your delinquency is related to an acceptable cause, and that cause is temporary. If you are looking for a solution that avoids foreclosure but does not allow you to keep your home, then your income documents should substantiate that your delinquency was/is for an acceptable reason, and that reason continues to be an expected and on-going condition.
Related posts:
- Lender Workout Solutions – Forebearance Agreement
- Lender Workout Solutions (Blog Series)
- Lender Workout Solutions – Repayment Plan
- Cost Cutting Tips To Prevent Foreclosure
- How Foreclosures or a Short-sale Can Rip Your Credit Rating To Shreds
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