You can probably relate to many other Wisconsin residents whose financial situations were stable until they were suddenly caught off-guard by unexpected circumstances that wound up throwing it all into a downward spiral before they knew what had hit them. Perhaps you endured a drop in income or someone in your immediate family suffered an urgent medical situation that required surgery and a lengthy recovery period.
Even moving to a new location where cost of living is higher than it was in your previous area is enough to cause financial instability. While some economic crises may resolve themselves with a little time and diligence on your part, when you least expect it, a financial problem can get so out of hand that you are staring straight into the distinct possibility that you may lose your home to foreclosure.
Is there a way out?
When you’re personally involved in a financial crisis, it’s sometimes difficult to see the whole picture. This is because it’s human nature to worry about the immediate issue and fear the worst. Sometimes, however, by thoroughly researching your options, you may discover a choice you didn’t know existed, such as foreclosure-avoiding ideas like the ones listed below:
- Strike a deal with the lender: Most lenders also want to avoid foreclosure. If you’re in a dire situation, you may be able to work out a compromise where your lender allows you to adjust your payment plan until your finances are back on track so that you don’t lose your home and your lender doesn’t have to deal with the hassle of processing a foreclosure.
- Sale options: Are you familiar with the short sale process? It may be an option for you if your lender has filed a notice of default on your loan but has not yet placed your home up for auction.
- Sign over the deed: Technically called a “deed in lieu,” this option allows you to sign your house over to your lender. It damages your credit score, and many lenders are quite reluctant to agree to this type of plan; however, if all other hope seems lost, it may be worth a try.
- Debt relief alternatives: If you haven’t researched bankruptcy options, you may want to do so before losing your home to foreclosure, as there may be a way to save your home and restore your financial stability.
Financial problems are personal and it’s understandable you’d want to keep the details of your particular situation as private as possible. However, sometimes, reaching out for support may be just what you need to help solve a problem you didn’t think was solvable. Many Wisconsin homeowners seek guidance from bankruptcy law attorneys who are well versed in the particulars of foreclosure regulations. They can act on your behalf to protect your interests and help you find the most viable option available to get life back on track and overcome financial crisis problems.