Foreclosure isn't always set in stone, but you do need to communicate with your lender. Lenders become extraordinarily nervous if they are not communicated with regarding the status of the property. Are you about to go through the process of foreclosure? Before you panic, you might want to consider a few methods that you can use to delay.

1. Sell Your Home Right Away

Immediately putting your home on the market can be a good solution. Most lenders will put your foreclosure on hold for a few months while you sell and while you go through the process of escrow. However, the bank needs to be aware that you are selling, and they should be kept in the loop regarding the escrow process; otherwise, they will not be notified and will simply assume you have defaulted on your loan.

2. Complete a Short Sale

If you can't sell your home at a rate that will pay off your mortgage, you can consider a short sale. However, a short sale does need to be approved by the bank; short sales sell the property for less than the amount of the mortgage, but you are still responsible for the amount still due. Some banks will consider short sales because they still need to sell the property anyway; it's easier for them if you handle the process. 

3. Begin Bankruptcy Proceedings

While you are in bankruptcy, foreclosure processes are stalled. In fact, any collections of debt, regardless of the type of debt, are usually stalled during bankruptcy. Of course, that does mean that you are going to be going through the process of bankruptcy -- if your financial status is otherwise very stable, you might not want to use this method. If you're going to declare bankruptcy regardless, though, it can be a good way to get some breathing room while you try to figure things out. 

4. Request Original Documents

The process of foreclosure can only occur if the bank has evidence of two things: the initial mortgage loan and your existing debt. Sometimes you can delay the process by requesting original documents regarding the loan, confirming the amount of debt you have and with whom. If your loan has switched hands multiple times or is with a large company, it's possible that it may take some time to furnish this documentation. 

Sometimes a foreclosure isn't necessarily the worst thing that can happen to you. Though a foreclosure will hurt your credit report, you will be able to begin rebuilding your credit history almost immediately thereafter. Still, it's usually in your best interest to try to either delay or avoid a foreclosure if possible. A foreclosure attorney can help.

For more information, contact a business such as Liviakis Law Firm.