The easiest way for a New Yorker to keep their home out of foreclosure is to make sure that they make timely and complete payments toward their mortgage. A history of missed payments or payments that are not the full amount of the monthly sum due may lead the homeowner's lender to initiate foreclosure proceedings against them for the repossession of their home.
When foreclosure proceedings begin, a homeowner may not know what options they have to stall or stop the process. The homeowner generally has the option of contacting their lender to see if that institution is willing and able to modify the loan terms to make compliance with them possible. Depending upon the lender, a homeowner may be able to have their payments reduced or the repayment period extended so that they do not default on the home loan.
Under the federal government's Homeowner Affordability and Stability Plan, a homeowner can seek to have their mortgage reduced before they go into default. Addressing a potential payment problem before it occurs can help keep an individual's mortgage out of foreclosure but may not help someone whose home has already entered the process.
When a homeowner cannot work with their lender to change the terms of the loan or does not qualify for government programs that may help keep the home out of foreclosure, they may consider a different route toward protecting their home. Though bankruptcy cannot stop a foreclosure proceeding from happening, it can provide a homeowner with time to formulate a plan to find financial stability and to get out from under their home and other debts.
Mortgage debt can cause major problems for a homeowner. Foreclosure is a damaging legal process that can result in an individual losing their home. To explore more options for protecting one's house, readers may wish to speak to debt relief and bankruptcy attorneys in their communities.