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10 Ways to Stop a Foreclosure


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Pre-foreclosure Sale
A short sale allows you to sell your home at current market value and use the money to satisfy your mortgage.
A short sale allows you to sell your home at current market value and use the money to satisfy your mortgage.
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If you're certain you won't be able to recover from your financial situation and stay in your home, you may be able to sell your home with the bank's permission before the foreclosure process begins. A pre-foreclosure sale, also known as a short sale, allows homeowners to sell their home at current market value and use that money to satisfy their mortgage [source: Chicago Tribune]. Since the bank would lose money if the house goes into foreclosure, lenders usually allow the total of the mortgage to be forgiven with the sale total, even if it's less than the total mortgage due [source: HUD]. If you have an FHA-approved loan, you may even be entitled to a relocation stipend as part of the pre-foreclosure sale [source: HUD].


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