Did you know that in the year 2018 alone lenders foreclosed on more than 230,305 properties through repossession? As a homeowner that is slipping into foreclosure, you may be facing feelings of anxiety, depression, fear, and even hopelessness. The worst thing you can do is give up and just let the bank take away the home you’ve worked so hard for all these years.

From loan modifications to short sales, you have homeowner rights and should be represented by a reputable real estate attorney, who will go to court with you and explain the options you have to avoid foreclosure. In this blog, you can find some of the options available to you while facing a mortgage foreclosure, or foreclosure for other reasons as well as the advantages and disadvantages of each.

A Short Sale

A short sale is for homeowners who owe more on their home than it is currently worth. In most cases, the property must be put on the market and you must prove financial hardship in order to qualify.

The advantage of a short sale is that this allows you to avoid foreclosure, and to at least salvage part of your credit rating, something you would otherwise need to rebuild in the future. Since this option also keeps the foreclosure off your record, you could be eligible for another mortgage in as little as 24 months. If the property was foreclosed on, it would take at least five years to qualify for another mortgage. As with any option you are considering, it’s best to contact a reputable foreclosure attorney in Houston to tell you if this is the best option.

The disadvantage of a short sale when you’re heading into foreclosure is that it can be a trying process. It’s best to hire a reliable real estate agent to help with the sale and avoid the stress for yourself.

A Loan Modification

A loan modification can reduce your interest rate and also extend the life of your loan. These functions of a loan modification make your mortgage payments lower. With the increased affordability, you’ll be better able to stay in your home and avoid foreclosure. Keep in mind that a loan modification tends to be more of a temporary solution, but it is effective for those who can thrive financially with the lower payments.

Sell the Property

Although most homeowners prefer to think of this as the last step before losing their property to foreclosure, another option is selling the property. It is important to talk to a real estate agent or a foreclosure attorney to find out how to go about this option.

The advantages associated with selling the property are that you can avoid foreclosure and the hit to your credit. You also get to harvest some of your equity. The disadvantage is that most homeowners in today’s uncertain economy don’t have sufficient equity built up in their homes without going for a short sale instead.

Whether you choose a loan modification or one of the other options out there, it is important that you do something. Doing nothing and just waiting on them to remove you from your property is not a solution at all.