Prevent foreclosure – You have debts? Are you in the unfortunate situation that now a creditor has also initiated a foreclosure sale of your property to pay off his debt claim? Don’t worry! If you act early enough and certain circumstances are present, you can prevent a foreclosure.
Prevent foreclosures – The options
As soon as one has been informed about a foreclosure, the worries and fears are great. From many quarters in this situation comes the phrase, “You can’t stop a foreclosure.” But how hopeless is this situation really? What options are there to fight the foreclosure proceedings? We have listed 4 options for you that may be able to help you.
The way out of the foreclosure – negotiations with the bank
Keep calm and consider what course of action would be best for you. The best way to escape foreclosure is to negotiate with your bank. Not only does your current financial situation play an important role, but the forecast of your future financial situation also plays an important role. A bank will only be interested in agreeing to a new deal if there is a good chance that the installments will be paid on time in the future. It is particularly important that you act in good time when you learn of the enforcement proceedings.
Deferment of installments
This option is recommended exclusively for people who can say with certainty that they will have more money available again in the future. The core of this option is the deferral of the installments. A deferment means the suspension of one or even several loan installments. The bank will agree to this option only if there is an improvement in the financial situation in the future.
Reduce or suspend the repayment rate
One way to prevent the foreclosure of your home is to reduce or even suspend the repayment to be paid. To make this option a reality, you should talk to your bank. The likelihood that they will agree to a new arrangement with you is not that small, as the bank often does not benefit from a foreclosure either. This procedure is particularly useful if it is foreseeable that you will have more money available again in the future.
Another possible option in the event of an impending foreclosure is to reschedule. Rescheduling means taking out a new loan to pay off an old loan. Rescheduling only makes sense if you have to pay less interest on the new loan than you did on the old one. It is important to constantly try to reduce your interest costs. You can take out a new loan with the same bank or with any other bank.
If you have actually managed to do this and have reached a new agreement with your bank, it makes sense that you still try to cut back a little in your everyday life and save money so that you can fall back on your savings in financial bottlenecks. You can save in a wide variety of areas of your life. From getting rid of your own car and switching to public transportation to comparing and switching electricity providers. Here we have an article for you that deals with the topic of “saving”:
- Foreclosure explained
- Online portal and local court list
- Foreclosure Submission
- Compulsory mortgage
- Tip! This is how an auction works (external): Compulsory auction procedure
Saving: Advisor and Financial Check
First of all, it is important to have a stable basis. You must always keep an eye on regular and one-off expenses. Our guidebook provides valuable tips and tricks for creating a solid financial basis step by step.
We also have many individual areas where a lot of money can easily be saved. Every week, every month, so that a solid financial basis is getting closer and closer:
- Save subscriptions
- Save Shopping
- Save Driving
- Save free time
- Saving budget
- Save Travel
- Save electricity
- Save relocation
With stable financial resources, it is then particularly worthwhile to think about your first investments, so that your money – passively – works for you.