How to Avoid a Short Sale on Your Home
Short sales are a viable alternative for many homeowners who want to avoid foreclosure For a homeowner who wants to stay in his home, a short sale is not an option. If you are 90 days or more behind on your mortgage and you want to avoid foreclosure, there are options available to you to stop foreclosure and avoid a short sale, making it possible to stay in your home.
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Instructions
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Contact your lender and ask to speak to the loss-mitigation department. This can be a rather long wait, but it is the first in a few important steps to staying in your home and avoiding foreclosure. Loss-mitigation specialists are trained to help you stay in your home and won't be the same type of individual as you will find in the collections department.
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Provide the loss-mitigation department with a valid reason that you are unable to temporarily make your mortgage payments. Reasons that they consider acceptable are: divorce, job loss, hour cutbacks and income reduction.
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Be ready to provide the loss-mitigation department with your income statements such as pay stubs and bank-account statements for the last two months. This will help them to determine and ensure that your temporary setback will not impact your ability to pay your mortgage back at a later date.
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Ask the loss-mitigation department for a temporary deferment on your payments, allowing you to make up missed payments over a longer duration by adding just a little more to your monthly mortgage payment. This solution is also known as a loan modification. This will often allow a homeowner to span missed payments out of a six-month term, making it more affordable for them to catch up.
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Make scheduled repayments on time, or you will face being denied for the loan modification and could go directly back into foreclosure.
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