Most homeowners have a pretty good idea that they may be facing foreclosure shortly. So exactly what are all the options when facing foreclosure?

Negotiate a workout. Lenders are becoming easier to deal with by the day, thanks to the tsunami of foreclosures they currently have on their books. If you want to keep your house, then negotiating with your lender for a forbearance (stopping your monthly payments for awhile, then adding those on to the back end of the mortgage), a lower interest rate or a principal balance reduction may be possible.

Refinance. If you can get a better rate that will enable you to remain current with your payments, you can basically start anew. However, refinancing when home values are continuing to erode can be almost impossible.

Reinstate your mortgage. If you can scrape together enough cash to pay your missed payments and associated fees, you can “reinstate” your mortgage.

Reverse mortgage. If you are over the age of 62 and have a lot of equity in your home, you can probably qualify for a reverse mortgage.

File bankruptcy. Consumers can file either Chapter 7 or Chapter 13 bankruptcy, and either can be used if you want to keep your home. A New Jersey bankruptcy attorney can advise you how.

Go to court. You can fight your foreclosure in court if your lender cannot prove ownership of the mortgage or if they have violated federal fair lending rules.

Short Sale. If you can get your lender to agree to the sale of your home for less than what you owe – and to let you off the hook for the difference – a short sale is a viable option.

Deed in Lieu of Foreclosure. This means that you simply hand over the deed without a foreclosure proceeding.

If you are a homeowner facing foreclosure, contact Johnson Legal PC for a consultation to find out what options exist in addressing the lender’s action and defending your rights and home under the law.