7 Ways to Prevent Foreclosure
Through no fault of your own, you may be facing one of the greatest challenges of your life—how to prevent your property from being foreclosed upon.
What is Foreclosure?
Foreclosure is the act of taking possession of a mortgaged property when the mortgagor fails to honor their mortgage payments.
Conversely, a foreclosure is a legal action mortgage lenders use to take control of a property that is in arrears. For borrowers facing foreclosure, there is often uncertainty about their legal rights and even the long-term consequences of foreclosure. (1)
When you fail to pay your mortgage, we buy houses Pennsylvania experts can help you from suffering foreclosure. There are not one, two, three, or four ways they can help you. These experts have seven ways through which they can help you from facing foreclosure.
And the following are the seven ways to prevent foreclosure.
1. REFINANCE
In today’s marketplace, there are many different types of financial institutions that lend money. While you may not be able to refinance with your local bank due to your current situation, there are many mortgage companies and lenders who specialize in creative financing solutions.
That’s how they can compete with the big banks. They are often able to review your situation and find a solution to your needs.
It is true that the loan you get will probably have a higher interest rate than a regular loan. But if you have a good amount of equity in your property, the ability to refinance may be a good option that’s available to you.
2. BRING YOUR MORTGAGE CURRENT
I know what you are thinking: “If I could bring my mortgage current, I wouldn’t be in this situation!” That may be true, but have you investigated every possible way that you may be able to get the funds?

Can you borrow it from a friend, family member or co-worker? Can you sell something? Does your employer have any hardship loan programs? Brainstorm with family members or close friends. The more you think about it, the more likely it is that someone will come across a solution.
3. CREATE A WORKOUT WITH THE LENDER
The lender does not want to foreclose. That’s because lenders are in the business of having their money at work in loans, and not sitting on a property they have taken back through foreclosure. In fact, they understand that you want to sell my house fast Pennsylvania. Not only is that a black mark on the lending institution, but it hurts their financial picture as well.
Therefore, in many instances lenders are willing to do “workouts”. What this means is that they are willing to work out the back payments that are owed, until you become current again.
A typical workout would be the lender taking the full amount of your back payments and dividing that number by 12 or 24. They would then add that amount to your current payments, until you are paid upon.
When considering a workout, you’ve got to be able to make that extra payment each month or you will be right back where you started—in the foreclosure process for the second time. At that point, the bank will not look very favorably upon your situation.
It’s best to work with a workout specialist...someone who has done workouts before and knows the “ins and outs” of the lending business and
we buy houses in Pennsylvania experts will help you avoid foreclosure.
4. DECLARE BANKRUPTCY
Declaring bankruptcy is viable option to being foreclosed upon, but it should be used only as a last resort. Also, use it only if you know that you will be able to keep up with the future loan payments. Otherwise, you’re just postponing the inevitable, and the longer you wait, the less money you will walk away with from your property.

A bankruptcy will be reported on your credit report for seven years. The bankruptcy will also be reported in the financial section of the newspaper.
Declaring bankruptcy is also costly. When declaring bankruptcy, you will have the option to declare either Chapter 7, 11 or 13 bankruptcy. These refer to different parts of the bankruptcy law, and relate to whether you are somewhat in debt and need to renegotiate with lenders, or whether you truly are going to walk away from your debts. However, be warned that because you can only declare bankruptcy up to every eight years, certain future debts might not be eligible for even bankruptcy protection.
5. CREATE SHARED EQUITY
To create shared equity, you borrow the money from an investor, in order to make up your back payments. In return for bringing your loan current, you give the investor a certain portion of the equity in your property. You are giving up part ownership, in return for keeping part ownership: That beats giving the whole thing over to your lender.

Of the seven methods to avoid foreclosure, this is the most di cult to accomplish, because there are not many investors who are willing to risk money on an individual who has a history of not paying and becoming at risk foreclosure.
6. TRANSFER TITLE
This is a form of property sale. It’s called a “subject to” transaction. An investor offers to make up your back payments and take over your property, subject to the existing mortgage.
The title of the property goes into the buyer’s name, though the mortgage stays in your name until the loan is paid on. This could take as little as thirty days, or as long as three years.

You may ask, “How do I know the investor will make the payments?” The answer is quite simple: He has just made up all of your back payments; he now has a financial stake in the property. It only makes sense that he makes your payments to protect his investment.
7. SELL YOUR PROPERTY QUICKLY
Sometimes people just want to walk away from a bad situation, and leave everything that reminds them of that situation behind. In this case, you sell your property outright, collect any equity that you have in the property and start over again.
One great thing about time is its ability to heal wounds. Yes, things may be bad now, but as Johnny Cash always said, “This too shall pass”. It may be time to face what is happening, and act in your best interest right now for a better tomorrow.
You can sell your property through a real estate agent or directly to an investor.
Give us a call anytime at 484-484-0971 or fill out this quick form to get started today!
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About the author
Mathew Pezon
Mathew Pezon is the founder and CEO of Pezon Properties, a cash home buying company located in Lehigh Valley, Pennsylvania. With several years of experience in the real estate industry, Mathew has become a specialist in helping homeowners sell their properties quickly and efficiently. He takes pride in providing a hassle-free, transparent, and fair home buying experience to his clients. Mathew is also an active member of his local community and is passionate about giving back. Through his company, he has contributed to various charities and causes.
