Foreclosure is a complicated process that can cause a great deal of fear, confusion, and stress for any borrower who receives a foreclosure notice from their lender. But unless your property has already been sold in a foreclosure sale, there are steps you can take to stop the process and give yourself time to make the right decisions regarding your property. Consider the following options if you are facing foreclosure:
- File Chapter 13 Bankruptcy – This is probably the most effective response to a foreclosure, because it stops the process and gives you time to restructure all of your secured and unsecured debt based on your ability to pay.
- Negotiate a Loan Modification – Although we hear more about loan modifications today than ever before, the fact is that few borrowers are able to save their property through loan modification. In most cases, borrowers only buy some time before they find themselves behind in payments again and facing the same foreclosure process all over again.
- Negotiate a Short Sale – Short sales are agreements by the lender to accept an offer for less than the total debt securing the property. It is difficult to get a lender to agree to a short sale in the first place, and then lenders usually take too much time to approve the offers (if any) submitted by the borrower.
- Surrender the Property – This is often the best choice for a distressed borrower, where the borrower surrenders title back to the lender. Also called a Deed in Lieu of Foreclosure, this relieves the borrower of their security obligation, while saving the bank the costs of the foreclosure process.
We can help you decide which option is best for you. Call 510 482 4720 today to discuss your situation and arrange a personal consultation.
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