What is the fastest method to stop foreclosure? Pay off the loan of course, but if you could do that you wouldn’t be in foreclosure. Don’t despair. There are still methods that can be used to stop foreclosure fast. Read on to learn about popular ways to stop foreclosure fast.

Refinancing Your Loan

A refinance to prevent foreclosure only works in some in some situations. If you have ample equity in your home and a sturdy income, you may be a ideal candidate for a refinance payoff. This is when a lender finances a new loan, supplying the funds to pay off the original mortgage plus any fees and penalties. By paying off the mortgage, you prevent foreclosure. If you have an ARM mortgage that has recently gone up, you may be the perfect candidate for a refinance loan as well.

Bankruptcy

Both a Chapter 7 and a Chapter 13 bankruptcy will temporarily halt a foreclosure while both sides wait on the bankruptcy court to give permission for them to proceed. Bankruptcy is without a dobut a last option that carries with it a set of pitfalls, including damage to your credit. It’s never a good idea to declare bankruptcy on account of the foreclosure alone.

Using Short Sales

In a short sale, you make arrangements with your lender for you to sell the home for less than what you still owe. Of course, the bank isn’t fond of short sales because they are losing money. It is still possible to have them granted by talking directly with your bank. A quick warning – short sales may have an impact on your taxes because the IRS thinks of short sales as income..

The Deed in Lieu of Foreclosure Option

If you are not able to keep the home, it might be easier to avoid the very end of the foreclosure process by offering a “Deed in Lieu of Foreclosure”. This is also good if the balance is more than the home is worth and your bank will accept it. A Deed in Lieu of Foreclosure is returning the property to the bank to stop foreclosure fast. It might be a good solution if you are not expecting to keep the home.

All of these are popular methods that people use to stop a foreclosure from happening. In a perfect situation, you would have more time to decide what to do. When it comes to foreclosure, the more time you have the more options are available to you.