It is not uncommon for homeowners to encounter financial challenges. It is also not uncommon for such challenges to make it difficult to keep up with mortgage payments. In some situations, a lender may call in a loan and activate a foreclosure process if a mortgagor has defaulted on his or her payments.
Things to keep in mind regarding foreclosure
When a person obtains a loan for a home mortgage, the lender in question is entitled to receive payment in full according to the agreed-upon terms of the loan. While a personal financial crisis might make it difficult for someone to pay his or her bills on time, it is never a good idea to stop making mortgage payments. It is always best to contact a lender to discuss the issue because alternative payment options might be available. For example, a lender might agree to lower monthly payments and extend the life of a loan to avoid foreclosure.
State laws vary regarding redemption
Every state has its own regulations and laws regarding foreclosure. In Tennessee, for instance, a borrower can redeem a home within two years after it has been foreclosed. However, in many cases, the right of redemption is waived, which is why it is especially important to make sure one clearly understands the terms of a specific agreement before signing it.
Where to seek support for home foreclosure issues
There are often options available to halt a foreclosure process, such as by filing certain types of bankruptcy. An option that applies in one case, however, may not be applicable to another. This is why it is helpful to seek consultation with someone well-versed in bankruptcy and foreclosure regulations, especially if a notice to foreclose has already arrived in the mail.