Facing the Inevitable: Your Options in a Foreclosure Situation

Foreclosure Situation in DenverSometimes, foreclosure is inevitable. Once this happens, most people simply accept their fate, pack up, and move elsewhere. After all, who would want to lose a reliable shelter, right? But the thing is, a foreclosure isn’t a dead end. A foreclosure could actually open up certain opportunities.

M-s-lawyers.com’s real estate lawyers in Denver explain that a foreclosure can become a way for you to gain some financial advantage, even if it means staying put for a while longer. Here are some options you can consider in the face of an inevitable foreclosure:

Short Sale

One good way of dealing with a foreclosure is to initiate a short sale of the property. You can talk to your lender and sell the house to them. Some lenders would accept this offer. By default, the price of the property would be lower than the loan amount you owe. You are then responsible for paying the deficiency – the discrepancy between the money you earned from the sale and the remaining balance.

Mortgage Modification

Sometimes, all you need to do is engage in a negotiation. There are foreclosure situations which you can overturn through mortgage modification. The approach may not work all the time, but an adjustment on your monthly payment would be worth it. Lenders are generally willing to modify mortgages, but not by large amounts.

Bankruptcy

You can also declare bankruptcy to deal with a foreclosure. Both Chapter 7 and Chapter 13 bankruptcy can delay the whole process by several months. You may even reach the point where you get to save your home just because of a bankruptcy declaration.

All these options have their pros and cons. What matters is that you choose the one that’s best for your situation. It’s ideal to consult an experienced lawyer in the field before making any decision to cover all your bases. Take time to learn about your options and consider every possible angle before making a move. Foreclosure, after all, may not be so bad with these opportunities.