If you are struggling with your bills and are worried about the possibility of a foreclosure, now is the time to act. There are many ways to avoid foreclosure, but you need to start looking into them as soon as you realize there is a problem.
Some of the ways you can avoid foreclosure in Tennessee include:
- Negotiating with your mortgage lender
- Using a financial assistance program
- Trying the Keep My TN Home program
Each of these options may be able to help you stay in your home.
Negotiating is a good way to help prevent a foreclosure. When you know you’re going to miss a payment or have already missed one, reach out to your lender and explain the situation. Many have programs in place to reduce fees and help you catch up on your payments.
Financial assistance programs
Tennessee has many financial planning resources that you can use. For example, the Neighborhood Assistance Corporation of America has some opportunities that assist people who face foreclosure.
Keep My TN Home
Keep My TN Home is a new program. The Tennessee Housing Development Agency has the Hardest Hit Fund Reinstatement Only Program to offer assistance to any homeowner who missed payments because of qualifying financial difficulties and hardships after March 1, 2020. This program provides up to $20,000 in assistance for those who quality.
Bankruptcy is another option you can pursue. With bankruptcy, you’ll choose either a Chapter 7 or 13 plan. The Chapter 7 plan can help eliminate unsecured debts, so you have more available income to pay your mortgage. You can also negotiate for reduced fees and for support with repaying the mortgage during your bankruptcy. Chapter 13 bankruptcy sets you up on a repayment plan, and you can focus on getting your debts under control to give you more income for other bills, like your mortgage.
These are four options to help you fight back against foreclosure. Each has its own benefits and downsides, so it’s worth discussing these with your attorney to determine which is best for you.