How to Prevent Foreclosure by Advocacy
- 1). List all of your options. Do not merely rattle them off in your mind. Make a physical list of all of the different options available to prevent a bankruptcy. These include renegotiating your existing mortgage loan or seeking a loan discount to provide for a short sale. Your trump card is understanding that you can block foreclosure proceedings by filing for bankruptcy.
- 2). Schedule a face-to-face meeting with a representative from your mortgage lender. Understanding that many lenders are located out of state in this day and age, you may need to settle for a pre-planned conference call.
- 3). Attend or appear for the scheduled meeting with an agent of your mortgage lender.
- 4). Explain your position regarding the prospective foreclosure, delineating what options you suggest. Ideally, the best course is renegotiating your loan in such a manner to bring the account current. Adjusting downward your monthly payment is something to include in the presentation as well.
- 5). Advise your lender that your only option if they decline to work out an agreement with you short of pursuing a foreclosure against you is bankruptcy. Most mortgage lenders understand that renegotiating your loan is less costly and time consuming for them than facing a protracted bankruptcy case. Additionally, if the real estate is your residence, you possess an added level of bankruptcy protection in the form of a homestead exemption.
- 6). Confirm any agreement you reach with the mortgage lender in a written document. Prepare this immediately after negotiations with the lender. Ensure that both you and the representative from the mortgage lender sign the document.
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