Going through foreclosure can be extremely difficult for families, especially when they have to give up their own cherished home. However, even though the situation is unfortunate, it’s important to not give up and accept this sad outcome.
If you’re a Baltimore family having difficulty paying your mortgage and facing the possibility of foreclosure, the situation can be extremely stressful. Additionally, this process could take a long time, which can make things much harder. In Maryland, you have several legal strategies for rehabilitation available to you. These strategies can provide options to help you overcome foreclosure and start moving forward.
If you’re dealing with foreclosure and don’t know what to do, check out this blog post. It outlines three legal methods that can lower your stress, reduce long-term financial obligations, and rescue you from foreclosure. Although not every strategy applies to every situation, you’re sure to find one that fits your requirements on this list!
Strategy #1: Work out a deal with your lender
Consider a “foreclosure workout” as a technique. To clarify, you can contact your lender and inform them that although paying your current mortgage is challenging, it’s still feasible for you to stay in the house and maintain payments if an appropriate solution can be reached.
It’s a common misconception that lenders prefer foreclosure to successful mortgage payments. In fact, lenders want their customers to be satisfied and make timely payments. For this reason, most lenders are open to negotiating with homeowners to help them catch up on late or outstanding payments. Possible solutions include temporarily postponing mortgage payments, creating a payment plan to settle overdue amounts over time, or restructuring existing debt.
Strategy #2. Bankruptcy
Filing for bankruptcy can help you avoid foreclosure. Although it may seem extreme, it can be a useful tool. When you file for bankruptcy, you inform your creditors that you are unable to pay them. This legal procedure halts all collection processes, which stops the foreclosure process.
Filing for bankruptcy should only be considered as a final option because it requires selling off assets to pay back creditors and leaves a mark on your credit score for several years. This can make it challenging to obtain loans, cars, or even jobs. It is not a recommended solution to financial problems.
Strategy #3. Short sale help for a foreclosure in Baltimore
If you’re at risk of foreclosure, a short sale can be a helpful solution. It’s a quick and effective way to take action. Essentially, you sell your home and use the proceeds to pay off all or part of your outstanding mortgage loan.
- Taking proactive steps to address foreclosure can help reduce stress and give you a sense of control over the process. This can make it feel less overwhelming.
- Property Pro Solutions is a company that assists Baltimore residents who are at risk of foreclosure by offering short sales. This option allows them to quickly sell their homes, sometimes in just a week. Thanks to the company’s local presence, residents are able to receive the support and guidance they need during this difficult period.
- A short sale can be a helpful way to decrease or completely remove the amount you owe on your mortgage. However, if a balance remains after you sell the property, you may have to pay it off, although there may be room for discussion with the lenders.
Although it may be hard to acknowledge, going through a short sale still involves vacating your house. However, the positive side is that it causes less damage to your credit compared to filing for bankruptcy or going through foreclosure. Ultimately, selecting this option enables you to maintain control and provides more possibilities for the future.