How can a Tennessee homeowner avoid foreclosure?

Buying a home can be an exciting but stressful experience. As years pass, changes in one’s financial status may create challenges that make it difficult to keep up with mortgage payments. If a Tennessee homeowner falls behind and misses several payments in a row, he or she may be at risk for foreclosure.

Prevent foreclosure by being proactive

Financial crises can be particularly stressful because the person going through it might feel as though finances are no longer under his or her control. Many people are surprised to learn that taking a few simple steps can often help avoid foreclosure. The following list includes things to do to lower one’s risk:

  • Never ignore a mortgage problem.
  • Get in touch with a lender as soon as payment problems arise.
  • Open mail that arrives from a lender.
  • Be aware of mortgagor rights.
  • Research available debt relief options.
  • Know how to recognize scams.
  • Sell assets to increase cash flow.

It is understandable that a homeowner might not consider a missed payment that big of a deal. However, even missing a single payment is a sign of financial trouble, so it is always best to review one’s financial status on a regular basis and avoid disregarding even a minor setback.

Lenders want to avoid foreclosure, too

Most lenders would rather work with a homeowner to come up with an alternative payment plan rather than begin foreclosure proceedings. There is a ton of paperwork involved, which most lenders would rather avoid. This is why it pays to contact one’s lender to ask if there are options for restructuring a payment plan rather than keep missing payments, then receiving a notice of foreclosure in the mail.

Bankruptcy may be an option

Filing for bankruptcy places an automatic stay on any foreclosure proceedings. There are several types of programs that can help alleviate debt and resolve mortgage issues, as well.

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