How to Stop Foreclosure Without Hiring a Lawyer

Don’t you know that with the current economic situation, home prices falling and the changing industry standards, a lender is better off keeping you in your home than kicking you out of it? The difficulty on how to stop foreclosure is no longer that difficult even without hiring a lawyer. If you find yourself unable to pay your mortgage, there are a few things that you can do to delay things or effectively stop foreclosure.

How to Stop Foreclosure

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How to Stop Foreclosure with Few Easy Steps

Lenders are no longer as aggressive as they used to be when it comes to foreclosure. Nowadays, they are more than willing to talk over a solution rather than kick you off your property. Here are a few easy steps:

1. Be honest with your financial situation

The road towards recovery should always start with you being honest with your financial situation. You need to look back and understand what went wrong and come up with a sustainable solution to your current condition. If you continue with the current situation, you can expect for things to get worse and eventually, you will get foreclosed.

2. Review your original loan documents and budget

Go over your loan documents including your budget and carefully examine it. The only way you can be totally honest with your situation is to look at it with unbiased and emotion-free outlook. Of course, it’s impossible to be totally free from emotion but, just try as much as you can. It’s only when you are not emotional about things that you can be truly objective about your situation and think clearly about what needs to be done.

3. Consult a housing counselor

Since we are mostly non-experts when it comes to housing and finances, it’s not a bad idea to consult a housing counselor. Make sure that the person you’re contacting has been approved by the US Department of Housing and Urban Development so that you can rest assured that you are working with a legit counselor.

4. Contact your lender the soonest

After you’ve come up with a sustainable solution with your counselor, contact your lender immediately. The first thing that you need to explain are the issues surrounding your financial difficulties. If your problems are temporary, try to ask for an extension of the deadline to pay for the missed payments.

5. Agree on a sustainable plan

Whatever agreement that you strike with your lender, make sure that it’s sustainable in the long haul. If it’s necessary, the lender may even agree to change the terms of the loan—maybe extend the period of amortization or lower the interest rate. Any agreement that is not sustainable will only worsen your problem.

If the lender refuses to talk to you, that’s the time that you will need to consult a lawyer. There are some communities that offer free legal aid so you don’t have to despair. How to stop foreclosure is not impossible, all you need to do is face the problem and seek for solutions.

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