If you understand the foreclosure time lines, then you will be better
equipped to create a strategy for you individual situation to save your home
from foreclosure. This may include some type of work out agreement, such as
forbearance, loan modification or refinance. Homeowners that understand these
times lines, can use them to their benefit as that’s what they were intended
for.

The first step in determining what strategy to handle your foreclosure, you
must first decide if you want to keep your home and if you can truly afford it
or get rid of it. This decision is very important as it can save you time and
money that you could be spending on a property that you really can’t afford and
will lose to foreclosure anyway. This is normally a tough decision for
homeowners especially if it’s their primary residence, as primary residences
hold strong emotional values. Especially if the homeowner has lived in the home
for many years, it is their first home, their kids were born and raised at that
home and because of this, homeowners will do almost anything to save their home
from foreclosure.

If you want to keep your home then the next step is to try and negotiate a
work out plan with your lender. If that doesn’t work and you have equity, then
you can consider doing a refinance. If you are in the military then you lender
has special assistance programs just for members of the military, which include
a reduction in your payments. Then if all those fail, then your last resort
would be to file bankruptcy, it’s important to know that bankruptcy is only a
temporary fix, but will give you protection of the bankruptcy court.

If you decide you no longer want to keep your home, then here are you
options. You could put your home up for sale, it is best to use a real estate
agent to price it right for a quick sale and they will handle all of the
negotiations, marketing etc. If you owe more than your home is worth you can
still sell it with a process known as a short sale. In a short
sale you lender will agree to accept less than you owe to facilitate the sale of
your home. If you don’t have a lot of time to sell, then you can consider
selling it to an investor, but be very cautious of this option.

Another option if you don’t have time to sell, is to basically sign the
property back over to your lender, this process is known as a Deed in Lieu of
Foreclosure. While this maybe a quick way to get rid of your property, it’s
important to know that it will show up on your credit as a foreclosure. And if
you have any second or third mortgages on your property, then you lender will
not want to accept this option, because they would have to pay off the other
liens on the property, while if they let it go into foreclosure the foreclosure
will wipe out those liens.