If you receive a foreclosure notice, it’s only natural to be frightened and wonder where you’ll live, but there are steps you can take to protect yourself and your remaining assets. Here’s what you should do if the bank threatens to foreclose on your home.
Being behind on your mortgage payments to the point of a foreclosure threat can be stressful, but panicking and treating the bank like a villain accomplishes nothing. Banks don’t want to go through the cost and hassle of foreclosing, but they expect you to do something. Call your bank and see if you can work out an arrangement to pay back what you owe. When you talk with people at the bank, stay calm.
Hire an Attorney
If you’re facing the threat of foreclosure, make sure you have proper representation. Hire an attorney specializing in bankruptcy law. Your attorney can file the required documents and work as your mediator in court. Find one by contacting foreclosure lawyers in Maryland.
Sell the House
Another option is to sell the house quickly. It’s a drastic move, and you may end up unloading your home for less than it’s worth, but you’ll be able to recover the equity payments you’ve made on the dwelling. You can use that amount to make a down payment on a more modest home elsewhere with payments you can afford.
File for Bankruptcy
Filing for bankruptcy is another, albeit temporary, way to protect your home from foreclosure. Hiring an attorney and filing won’t keep your home out of foreclosure forever, but it will stop the proceedings temporarily and buy you some time to find another way to make those back payments.
Keep these tips in mind the next time a bank threatens you with foreclosure to save your equity and maybe your home as well.