Effective Ways to Prevent Foreclosure

One of the most intimidating words out there you don’t want to hear about is the tax. What pops up in your mind when you hear the word “tax”? Some of you may say “oh it is about money”, but the majority of you might say “payment for debt”. More often than not, the word “tax” is deliberately associated with debt and one major reason is that, sometimes, people fall behind their mortgage or they are not able to pay their tax debts. That’s why, most of the time, you need to look for a bankruptcy lawyer in Baltimore, Maryland.

The most common effect of not being able to pay your tax is foreclosure. Foreclosure is a legal way used to repossess your property—in short, your home. If your house is subject to foreclosure, then you are required to move out. Sounds frustrating right? Don’t worry, you are reading the right article. The following section will be citing some ways to prevent foreclosure.

1.    Pay your debts – some lenders may still let you make your payments. Before taking any legal action against you, they will let you work a repayment plan; this will be according to what you can afford. If this happens, make sure to grab the opportunity and don’t forget to pay your debt and follow your agreement with your lender.

2.    Change the terms of your loan – if your mortgage has an adjustable loan, then you might get lucky! Your lender may freeze the interest rate for you before it increases or the lender may change the interest rate to meet what you can pay for. The lender may also extend the amortization period giving you enough time to pay your debt.

3.    Face your problem – ignoring your problem might lead to bigger trouble in the future. Take note, the bigger your debt is, the higher the chance of losing your home. You better make your payments as soon as possible before it gets too late.

4.    Hire a reputable lawyer – one of the best ways to stop and prevent foreclosure is by hiring the best lawyer in town. Nothing and no one can help you out but a lawyer. Lawyers know the ins and outs of how the tax system works, hence, they can be a great help when it comes to that matter.

5.    Respond to all lenders as soon as possible – more often than not, your lender will be sending notices to you regarding offers and ways on how to prevent foreclosure. If you have not taken any actions, another mail will be sent to you that will include notice of pending legal action. Don’t wait that long, immediately respond to your lender once you received a letter because negligence will not be accepted in foreclosure court.

6.    Use your assets properly – sometimes, using your assets can save your home from being seized. If you own a car, jewelry, or even a whole life insurance policy, then you can sell it to pay for your debts. Though these will not guarantee that your home will not be foreclosed, at least it can hold it while you think of other ways to save your home.

 7.    Know your mortgage rights – reading and understanding your loan documents will give you an idea on what your lender can and cannot do in the event that you won’t be able to make your payments. Research about the foreclosure laws and its timeframes. You can contact the State Government Housing Office to help you with that.

8.    File for bankruptcy – one way to prevent a foreclosure is by filing for bankruptcy. A bankruptcy lawyer i