This guide was developed to help you prevent foreclosure on your home. Our dedicated team can help you not only stop foreclosure by being proactive, but also how to lose as little money as possible in the process.
The First Thing to Remember is Be Proactive:
Know Your Options and Make Educated Decisions
Whether you are facing financial strain for the first time, or have been dealing with the economic stress for some time, we can help you find a solution. We have helped hundreds of homeowners facing foreclosure; we are good at it, and it is what we love to do. This helpful guide will give you the opportunity to educate yourself and become knowledgeable about the options. After you have finished reading, we invite you to call for a free consultation and more information... What do you have to lose?
There is no reason for embarrassment.
Every one makes mistakes. The most important thing is to face up to them. After admitting that there is a potential foreclosure at hand, it is time address it. Preserve your home! Foreclosure is a complex and expensive process, and lenders do not want to go through it any more than a homeowner does. All it takes to avoid foreclosure is assurance that you are serious about making the loan payments.
The first step is to be proactive. If you know a payment is going to be late, let the lender know immediately. Most lenders give the benefit of the doubt if you are honest with them from the get-go. Upon receipt of communications from the lender, immediately return their phone call or letter. This demonstrates willingness to work to relieve financial strain and get back on track. Don't be discouraged by the situation, resolve it!
Things You Can Do to Prevent Foreclosure
There are many unexpected circumstances that can cause people to fall behind in their loan or credit card payments. The first step to resolving this situation is to evaluate priorities. For example, missed or late credit card payments could affect credit reports, but neglecting a home payment can result in the loss of a home.
Short-Term Options
When working towards a resolution, the most important thing to do is to maintain candid communications with the lender. A lender cannot help you if they are not familiar with your personal situation.
Altered Repayment Terms
It is possible to bring an account up to speed after a series of missed payments. Some lenders will allow you to increase monthly payments until the payments are made up. This is a good option if you are able to pay higher payments for a short period of time.
Reinstatement
Reinstatement means repaying the balance of missed payments by a date specified between the lender and the homeowner. This option is best for homeowners who can pay the balance with a lump sum.
Forbearance
Forbearance consists of delaying payments until a resolution can be agreed upon. This process allows more time for the homeowner and the lender to discuss the options and come to a conclusion that is amiable to both.
Long-Term Options
Reevaluation of Mortgage Terms
It is possible that a lender will reevaluate the terms of your mortgage, and make adjustments to meet your needs. Even if you are unable to make up the past-due balance, it is possible to extend the mortgage over a longer time period. The lender could also reduce payments through alternate methods.
Federal Housing Administration Assistance
You are eligible to receive a one-time loan from the Federal Housing Administration (FHA) Insurance Fund if the loan in question is between 4 and 12 months past due and you are able to return to full loan payments.
This opportunity requires the homeowner to sign a promissory note. The U.S. Department of Housing and Urban Development (HUD) will institute an interest free lien in the amount of the loan that is due when the property is sold or when the loans are paid off.
Put Your Home on the Market
In the event that there is no possibility of meeting mortgage requirements, it might be necessary to sell your home and pay back the remainder of the loan. Refer to your lender, and request that they give you enough time to do so before considering foreclosure.
Relinquish the Property Deed
Before resorting to this option it is prudent to attempt to sell your home first if there are no other withstanding liens against the property. In fact, some lenders require this.
Depending on the situation, lenders may forgive debt when the deed for a mortgaged property is relinquished. Although not to the extent of a foreclosure, this action will have an effect on a credit report.
HUD Approved Counselors
HUD approved counselors are a step in the right direction if you are not comfortable discussing financial problems with your lender. As a third party, they can offer a fresh perspective and negotiation skills to help you work with your lender towards a resolution.
Bankruptcy
Bankruptcy is NOT a recommended option. Consider the consequences. If you declare bankruptcy, then you will have a bankruptcy AND a foreclosure on your credit report.
Be Proactive
You are responsible for payment of your loans. If the loan expectations cannot be met it is your responsibility, not the lender's, to prevent foreclosure. Start by providing the loan officer with all the relevant documentation and by being forthright with them. Offer access to information about your income, expenses, and any other current loans. From this information, a lender can identify the best method of moving forward.
Lenders are required to support their decisions, and you must prove the ability to bring the loan to date and meet payment requirements. Don't make promises that can't or won't be kept!
Repairing Credit Reports
The best method of resolving poor credit is to utilize a non-profit credit counselor. Do not be fooled by promises of easy credit resolution at steep costs. A non-profit organization will work with you and your creditors, and help both parties come to an amiable resolution.
Time Is Your Enemy!
Lenders can begin foreclosure proceedings within two months of missed payments. The more time that goes by, the higher the penalties and fees will be, and that doesn't even include interest!
The sooner you ask for help, the easier it will be. Act quickly and be proactive! We are standing by to assist you.
FREE CONSULTATION!
Contact us for a FREE, no obligation consultation. We will help you identify your options and answer any questions.
However, if you choose to sell your property and pay back your loans, we are interested in buying your home! We are experienced in buying and selling property, and we offer several options to help you make the right decision.
The purpose of this information is not to sell you anything. We pride ourselves on honesty and forthrightness. We will assist you in any way possible; including referring you to a third party if required to handle your unique situation. This consultation is completely FREE, no obligation.
