Delinquent mortgages are serious. In Nevada, provisions of your mortgage allow your lender to institute non-judicial foreclosure proceedings to sell your home at a trustee foreclosure sale. On rare occasions, your lender may decide to file a judicial foreclosure proceeding instead, which requires court approval. You can prevent foreclosure by speaking to your lender early on and advising your lender about your financial situation. Nevada lenders would rather not foreclose on delinquent mortgages because they already have too many foreclosure properties and would rather work out a solution for you to avoid foreclosure. Foreclosures cost lenders time and money. It is a good idea to speak to a foreclosure defense attorney if you are in default or about to default on your Nevada mortgage.
Options Available to Avoid Foreclosure?
The following are options that may be available to avoid Nevada foreclosure:
- Refinance. When you refinance, you obtain a new loan at a lower interest rate for a fixed term. The new loan pays off the old mortgage. If you have equity in your home, a refinance is a good way to lower your mortgage payment to one that you can afford.
- Reinstatement. Reinstatement involves paying your default amount current including fees or costs.
- Mortgage modification. A mortgage modification is a good alternative if you want to keep your home. The lender will modify your existing mortgage by lowering your interest rate, adding the default amount to the back end of your mortgage and extending your loan term.
- Deed in lieu of Foreclosure. Not all lenders will agree to a deed in lieu of foreclosure so you need to check with your lender if they will accept one. A deed in lieu is when you transfer title to your lender by signing over the deed, and negotiating that you no longer owe your lender any more money on your loan balance.
- Short Sale. Short sales are popular options to avoid foreclosure. You have to give up your home by selling it with your lender’s approval for less than you owe on your mortgage balance. You can negotiate that the sale proceeds satisfy any amounts remaining on your loan balance, and just walk away.
- Forbearance. Forbearance allows you to enter into a short term repayment plan to pay the defaulted amount and bring your mortgage current. Sometimes the lender will agree to reduce your principal as well.
- Filing Bankruptcy. Bankruptcy stops foreclosure, but should only be used as a last resort if there are no other options.
Obtain Legal Help
A real estate foreclosure defense attorney can help you find a way to save your home if you have defaulted on your mortgage or are about to default. The attorney is an expert in foreclosure prevention, and can advise you of the mortgage and foreclosure laws. An attorney can assist you with negotiations with your lender to find a solution to save your home from foreclosure.
