{"id":369117,"date":"2016-04-04T10:47:12","date_gmt":"2016-04-04T15:47:12","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/foreclosure\/10-tips-to-avoid-foreclosure.html"},"modified":"2023-12-11T17:21:41","modified_gmt":"2023-12-11T22:21:41","slug":"10-tips-to-avoid-foreclosure","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/foreclosure\/10-tips-to-avoid-foreclosure.html","title":{"rendered":"10 Tips To Avoid Foreclosure"},"content":{"rendered":"\n
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10 Tips To Avoid Foreclosure<\/h1>\n
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\n By Robert Rafii, Esq.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

If you stop making your mortgage payments, you may face foreclosure. Foreclosure is the legal process that a lender can use to repossess your home.<\/p>\r\n

There are two types of foreclosure: judicial and nonjudicial. Judicial foreclosure requires a lender to utilize the court system to obtain a judgment from the judge to begin the foreclosure process. Nonjudicial foreclosure allows a lender to foreclose on a property without the court’s involvement.<\/p>\r\n

In most states, if you are facing foreclosure on a property worth less than the total amount of your mortgage loan balance, the mortgage company may pursue a deficiency judgment against you. If that happens, you not only lose your home but also owe your mortgage lender an additional amount. In 12 states known as non-recourse states, the law prohibits lenders from pursuing you beyond what is available in your home equity<\/a>.<\/p>\r\n

Both foreclosures and deficiency judgments may affect your credit score and your credit report for years to come. Below are some tips on how to avoid the foreclosure process.<\/p>\r\n

1. Be Proactive About Tackling the Issue<\/h2>\r\n

The more you owe in missed payments, the more difficult it will be to rehabilitate your loan and avoid foreclosure proceedings. The pre-foreclosure process is lengthy, and most state laws require lenders to provide several notices to borrowers who are in default on their mortgage loans<\/a>. The worst thing you can do is ignore these notices.<\/p>\r\n

2. Reach Out to the Bank as Soon as Possible<\/h2>\r\n

Lenders want to avoid the hassle of a foreclosure sale<\/a> just as much as you do. Most lenders offer mortgage relief to help borrowers facing financial hardships. Options may include:<\/p>\r\n