Foreclosure forces a household to make some important decisions about where to go and where to live. If your home is currently or recently in foreclosure and you're wondering about the next steps to take, it's crucial to understand the options that are available. While the process can be scary, there are solutions worth exploring that will help ensure your family has a roof over its head. Below, a few of these potential solutions are discussed in more detail.

Look Into Redeeming the Home

Redeeming a house after it’s been foreclosed means buying it back. If you took out the initial mortgage prior to 2016, Alabama law allows homeowners one year to redeem a foreclosed home. If you took out the mortgage on or after January 1, 2016, the law offers a shorter 180-day post-foreclosure redemption period. In most cases, the homeowner can buy back the home if they can pay the sale price, interest charges, and any other associated costs.

Seek Financing

Whether you plan to redeem the house or purchase a new property, financing is essential. But in the wake of a foreclosure, securing a new mortgage loan can be a challenge. Even if you're planning to rent a home for the foreseeable future, the property owners will likely inquire about past foreclosures. The best option is to consult a lawyer or speak to a housing counselor with the Department of Housing and Urban Development. They can review the exact details of your situation and help you find local resources for financing, down payments, and deposits.

Stay in the Home as a Renter

If the home was purchased in foreclosure by the federal mortgage lender Freddie Mac, there is a possibility the prior owners could remain the home as rent-paying tenants. The REO Rental Initiative lets the homeowners stay in the property on a month to month basis. 

If you need to foreclose on your home, make it a priority to meet with an attorney so you can thoroughly understand all your rights and options. Padgett & Robertson, Attorneys at Law in Mobile, AL, has been representing clients throughout the southern part of the state since 1978. They offer legal services in bankruptcies, wage garnishments, and other debt issues. Call (251) 342-0264 or visit them online to schedule a consultation.