Learn To Get Around House Repossession

House repossession is an unfortunate side effect of the economic recession.  Stop beating yourself up over it and know that you certainly aren't the only person facing this right now.  I'm sure you're tired of hearing people tell you about what you should have done to prevent this from happening, so I'm going to help you learn what your options are to keep your home and get through this tough time.

There are lots of options available to you to keep your home and stop house repossession.  The bad news is that you do have to pay it back.  There aren't many ways around that.  If you're willing to work hard to get the money paid back and keep your house, you're well on your way to doing it.  Most people beat themselves up so much that they've given up before they even get started.  The things you need to know are the laws that pertain to repossession, loans available to help you, and cutting a deal with your lender.  None of these will save you a ton of money, but they can help you not have to bail out in the middle of the night.

Image courtesy of Respres via Flickr.com.
Image courtesy of Respres via Flickr.com.

Know The Laws

One good thing about house repossession is that you're usually notified that your home is about to be repossessed. This is very different than things like cars and electronics, which can be taken without any notice. This will buy you some time to get things in order. It obviously doesn't happen over night, payments were missed and letters were sent, but you now have to take action.

The laws that pertain to repossession are different in each state. They can also be different in each county and municipality. Some cities, like San Francisco, are very homeowner friendly and have laws that will slow your home from being taken from you. Other cities and states are the exact opposite. If you know the laws, you aren't going to be surprised by anything and you'll know what options are available to you when dealing with your home lender. There are many different things that your lender can do to repossess houses in the bounds of the law. An understanding of what they can do can help you maneuver through the legal process and stop repossession of your home.

Take Out A Loan

If there haven't been any penalties to your credit by your lender yet, and your credit score is still intact you can try to get a loan to pay to your lender.  It's probably not likely that you can get a loan that will pay off your mortgage if you still owe a ton of money, but it can be used as an upfront payment when negotiating with your lender (more on this below).  

Before pursuing this route keep in mind that if you take a loan you'll be pretty close to making two mortgage payments per month.  You'll have to pay your mortgage and repay your loan each month.  If you can get a significant amount that will take care of a chunk of your mortgage the double payment period won't last very long.

Negotiate With Your Lender

Your lender wants you to stay in your house.  It probably doesn't seem like it with all of the phone calls and harassment, but they do.  They make more money with you in your home than by selling again at a foreclosed price.  It's in their best interest to work with you for you stay in your house and stop repossession.

The only way you're ever going to figure this out is by calling them.  Yeah, I know that sucks, but it has to be done.  You'll get to talk to a real person and tell them your story.  They may have options available for you that will help out both parties.  Sometimes they will make you pay back the missed payments, plus a large penalty, along with your regular monthly mortgage payment.  It's going to be a lot of money those months, but you get to stay in your home.  Other times, they will want a lump sum of all the money you owe, plus penalties, along with your mortgage.  Only by calling them will you know what options they have available to you.

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