Kikegaona Weblog

People worldwide use various methods to stop foreclosure. These methods may be short sale, friendly foreclosure, repurchase or forbearance. Each of the methods has their own plus and minus points.  

In case of the short sale, the property is sold to a third party at the first instance. The price derived from the sale is accepted by the creditor as the full settlement of the debt in case it is negotiated in that way. However, you should be careful about the creditor allowing a short sale and at the same time asking for a deficiency. The chances are remote that you will get a hefty price via short sale.  Therefore you may obtain services of some expert or you may be paying much more in the process than what would be alike a one time settlement. 

Friendly foreclosure is a method where the creditor or third party provides you with stop foreclosure help and sells the property during foreclosure and cleans all the title belonging to other lien holders. At a later date the friendly creditor or bank sells back the property to the debtor. 

At times you can buy back the foreclosed property after the auction is over. This process is called repurchase after the foreclosure. And finally there is the forbearance. In this case the debtor makes some payment or takes some other action requesting the creditor to stop foreclosure at least temporarily. However, this may put a black mark on your credit rating and you may face immense difficulties in future dealings with banks and mortgage companies.