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Repossession and Foreclosures: Homeowners Option to Foreclosure

Option to Homeowners in Foreclosures.

Once a home has been foreclosed on, it will be repossessed and then sold on the auction block at the courthouse. Just because your home is in Foreclosure proceedings and even has a court date to be sold does not mean you have no options.

There are always options until the home has actually been sold, so educate yourself and be an advocate for your situation. Most lenders do not want to foreclose or repossess a home. They would much rather be paid than go through this process. Because of this they are willing to work with borrowers and there are many programs available to help.

One option to avoid repossession is to apply for forbearance. This is simply a period in time where the borrower is not required to make any payments as long as they are able to make some form of payment up front and agree to a specified repayment term.

Lenders are bound by law to try and approve borrowers for forbearance if they meet the conditions.

Other options available to avoid repossession include negotiating a payment plan with the bank. As long as you make payments and can prove that your financial situation is improving or will improve quickly the bank may be able to help you out.

You may also consider selling your home and then renting it back, re-financing, or even having a family member "buy" your home. Repossession is not the only option even if you are in Foreclosure proceedings so keep this in mind.

By John Nazareno
Published: 4/14/2009

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