Stop Foreclosure! Know What To Do

Stop Foreclosure! Is it possible? Yes, you can stop foreclosure if you take the appropriate actions immediately. Consider the following steps you can do to stop lenders from foreclosing your home:

Call your lender right away and request to speak with someone from the Loss Mitigation Department. This is the department that particularly handles foreclosure properties. Explain why you have missed on your monthly payments especially if you’ve been through difficult circumstances.

Know your options. Usually, you may request for some options to stop foreclosure. One option would be to ask for Forbearance. This is where your lender can waive some fees on your debts to help you keep up with the payment.

Another option would be Loan Modification. A Loan Modification is much like Loan Refinancing but instead of going through the re-application process, your lender can grant you a new loan without re-applying. This can save you money from application costs and it greatly speeds up the loan processing.

If you want, you can also request for a Reinstatement. With a reinstatement, your lender will give you an extended period to submit all the payments you’ve defaulted. However, a reinstatement requires you to pay your debts in full.

These are just some of the adjustments on your mortgage loan that you can ask from your lender. Of course, it would depend on your lending company which one among these options they would prefer. Just remember that these are just temporary options to buy you more time for repayment before the actual foreclosure. See to it that you’ll be able to come up with the solution to secure the payments you need.

Sell your home. If you see that there’s no way you can secure the amount you need to repay your mortgage in time, you still have the choice to sell your home before your lender forecloses it. But you need to be aware about the risks of dealing with foreclosure scammers or home buyers who are simply out to take advantage of you.

As much as possible, make sure that the purchase price you’ll put into your property will be fair enough for its market value and that you would have enough money to pay off the debts you’ve defaulted including other fees involved. If you’re going to sell your home, it would be better if you can buy as much time as possible before your lender files foreclosure. This way, you’ll also have more time to come up with a better deal from a buyer.

Study contracts carefully. Before you sign up any agreement, especially if you’re selling your home, never forget to scrutinize every detail included in the contract. Don’t sign a document which has blank spaces or blank lines.

Do not go into an agreement if the buyer promises to pay back your default and all you have to do is sign over the title of you property. This puts you at great risk that the buyer will not be submitting any payment to your lender. He can use your property for lease and keep the money for himself until your lender forecloses your home completely. Always remember, that you cannot pass your accountability for your debts just by signing over your property.

By Liz Roberts. Roberts is a loan consultant with Loan Hunt Finance and has been providing consumers and business owners with home loans financing since 1989. For years she has helped people with home loan problems especially pertaining to home mortgage loans and bad credit home loans. Copyright. (Source)

---

More Real Estate Resources: CNY Property Listing, Homes Going Green, FSBO Property Listing, Investor Realty PDF Magazine, CNY Property

 

Can You Stop Foreclosure?

You have several options when it comes to saving your home from foreclosure. Refinancing, bankruptcy, selling your home, working with your lender’s Loss Mitigation Department; all of these can stop your foreclosure. When trying to keep your home, loss mitigation is the best option to keep your home and minimize damage to your credit.

Loss Mitigation

If your loan balance is relatively high versus the value of your home, your refinance options are very limited. It would be very difficult to try and refinance your home loan because of credit score and “loan to value” issues. However, you may have a case for Loss Mitigation.

What that means is that you have the right to contact your lender, and see if there is a way for you to get caught up with your home loan. If you present your case effectively, you would probably be able to qualify for a home loan workout plan. There is another thing to consider when thinking about Loss Mitigation to keep your home. You have to be able to make the new payments.

If you agree to a lender’s “workout” or “loan modification” solution and then fail to make the agreed-upon payments, you’ll be right back into foreclosure.
This can be a big problem if the financial crisis that caused you to fall behind in the first place isn’t over. If you don’t know where you’re going to get the money to make the payments, trying to work out a solution with your lender will be tough.

Be realistic. Many times people struggle to hang on to a house that they simply can’t afford. That may seem harsh, but sometimes it is the truth. This is especially if you have an Adjustable Rate Mortgage where your monthly payment continues to increase.

If that is the case, you may not be able to work out a plan with your lender’s loss mitigation department. You may want to think about a Short Sale or some other option of selling your home so that you can at least minimize the damage to your credit, put this behind you, and get on with your life.

Many homeowners facing foreclosure simply don’t know what to do. You can learn exactly what you need to do, and even get started for free. Take a minute and give them a look… ForeclosureConsultations.com – – (Source Link)

Real Estate Buyer & Investor Resources: CNY Property Listing, FSBO Property Listing, Investor Property PDF Magazine