If the bank has threatened to foreclose on your home, it’s natural to feel powerless. Losing your financial footing is inherently stressful. Depending on the circumstances, though, you may not actually be powerless. For those facing foreclosures, the following steps can slow down—and potentially even reverse—the proceedings.  

What to Do When Your Home Is Facing Foreclosure 

1. Contact Your Lender 

It may be tempting to shun calls, emails, and letters from your lender, but the sooner you address the problem, the sooner you can resolve it. As soon as you learn you've fallen behind, call the financial institution that holds the mortgage and ask them what your options are. They might propose refinancing the entire loan, for example, or restructuring your payment plan so you can catch up. If neither of these is an option given the circumstances, proceed to the next step. 

2. Review Your Rights 

Under federal law, lenders can’t typically commence foreclosure proceedings until the borrower is at least 120 days behind. Every state has strict laws regarding the process as well.

In Tennessee, for example, borrowers may redeem their property up to two years after a nonjudicial foreclosure. Unless you happen to be well-versed in foreclosure law, it’s wise to consult a local attorney to confirm your rights have not been violated at any point over the proceedings. 

3. Consider Your Alternatives

If the lender proves uncooperative, it may still be possible to stop the foreclosure proceedings by declaring bankruptcy. By filing chapter 13, you may be able to roll the past-due payments into a manageable repayment plan. As long as you can make such payments while also keeping up with the current mortgage obligations, you should be able to keep your home. 

If you're facing foreclosure, turn to the Law Offices of Harry G. Lasser to determine how you should proceed. With three convenient locations in Tennessee, this practice is led by a seasoned bankruptcy attorney who’s been in the legal field for 25 years. Harry Lasser is proud to help clients regain their financial footing by achieving much-needed debt relief. To request a free consultation, reach out online or call (931) 372-9988.