5 Tips to Prevent Foreclosure in Lancaster, Pennsylvania, and the rest of the state.

Foreclosure may occur due to a homeowner’s financial problems.  

The process of foreclosure happens when the mortgage loan does not receive money in return and the bank starts to adopt control over the property to regain what it lost. 

If you are a Lancaster County homeowner who is starting the process of foreclosure, here are some ways to prevent the foreclosure from going through.  

5 Tips to Avoid Foreclosure in Lancaster, PA 

Please be aware that these suggestions may not be applicable for everyone’s circumstances, but these are some possible scenarios that you might encounter:

1 . Your mortgage must be paid off or your property needs to be sold.

The fastest and simplest process to stop foreclosure from occurring is to pay off your mortgage. This is the requirement from banks. They want you to remain at your residence so that they can receive their money in return. This is not an option for everyone.

2. Short sales are encouraged.    

A short sale is a process of selling property and spending the money you make for a down payment or to pay off the outstanding amount with the bank. This can prevent a foreclosure from influencing your credit score and the bank should back off. 
 
3. Arrange a negotiation with your bank.          

In some instances, you and your bank can settle on a deal. It requires a meeting with a mortgage or foreclosure specialist to discuss changes to your mortgage. For instance, your payments might become lower every month by spreading them out. Determine whether the arrangement will be helpful for your situation. 

4. Instead of foreclosing, hand over your deed.

Giving the bank the deed to your house may stop the foreclosure of your house. Normally, this only works if your house is worth about the same amount that is owed on the mortgage. If it’s not, the bank might go after the difference.    

5. Filing for bankruptcy.

Bankruptcy can affect your entire life. But after you file for bankruptcy, the process of foreclosure ends so this is still a way to avoid foreclosure.  

If you are uncertain of which option to choose from, think about whether you are able to pay off your mortgage and if you want to continue residing in the house. In this case, option number 2 (Arranging a negotiation with your bank ) is probably the best choice.

If you are looking to avoid foreclosure on your home by selling it, contact us at MarKey Property to make an offer.   

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