What is foreclosure? When a buyer purchases a property and takes out a loan, their lender takes a security interest in the property. This security interest gives the lender the right to foreclose on the property should the buyer default on their loan payments. Foreclosure involves the lender auctioning off the property and inheriting the auction proceeds in order to recoup their original investment.

If the home is worth less than the amount owed on the loan, not only will the property be lost, but the owner will be liable for the additional monies lost by the mortgage company. Foreclosure can have a direct impact on one's credit, and should be avoided if possible.

Ask yourself if you are facing the prospect of imminent foreclosure. If so, we understand how nerve-wracking a time this is for you. However, it is also a situation that demands some perspective.

Perhaps your difficulties are only temporary, due to some unforeseen financial setback? If this is the case, we can help you find a solution that can help you ward off foreclosure and get back on your feet.

If you find, however, that your mortgage payments are bloated and becoming too much to bear (even when things are "going well" financially otherwise), it may be best to let go of the property and move on. This does not mean that foreclosure is inevitable. There are other solutions that can help you escape the oppressive burden of an expensive home loan.

Contact a Reliance Residential, LLC expert who can help you study your options and determine the best solution to fit your needs.