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7 Proven Strategies To Avoid A Foreclosure And Save Your Home
f you or someone you know you won't be able to buy another
is headed toward house for several years unless
foreclosure, or are already you agree to the exorbitant
in foreclosure, you need to know interest rates of "Bad Credit'
your rights and options now. Only mortgages which can be twice the
then can you save your house… rate of regular mortgages.
save your credit… and save your
equity before it's wiped out But what if you've experienced a
forever. temporary hardship? Life is
unpredictable and we all
By Steve Groom experience circumstances in our
lives that are unforeseen and
Foreclosure can mean the loss of that are out of our control.
your home, any equity in your Often times these circumstances
home, your credit rating and your can prevent us from making our
dignity. Foreclosure is a very monthly mortgage payments on
public process, with your name time. Some of the issues
listed in the public court contributing to delinquency
records and then published in include:
your local newspaper. Then, once
you are ready to move on with our " Job loss
life, your foreclosure appears on " Medical illness or injury
your credit report for at least " Divorce
7-10 years. In addition, all " Death in the family
mortgage applications currently
ask if you have EVER had a If you have experienced one of
foreclosure. You'll have to check these situations it can severely
"Yes" for the rest of your life. impact your ability to pay your
mortgage obligation. If you have
A foreclosure usually means that experienced a temporary setback,
you may have several options method of most lenders. Here the
available to you to stop lender agrees to let you catch up
foreclosure. Here are several the back payments by adding a
proven strategies to avoid a portion of the past due amount to
foreclosure: each current monthly payment
until the account is current
1. Mortgage Modification- most again.
often used if you have
experienced a permanent reduction 4. Mortgage Refinance- you may
in income and can't afford a elect to refinance your
repayment plan. In this case, the delinquent loan with your
terms of the loan may be adjusted existing lender or a new lender
(the interest rate is lowered or if you faced a temporary
the term is extended) so that financial setback, had good
monthly payments become credit prior to the setback, and
affordable. can prove that you can now
support the new mortgage payment.
2. Forbearance Agreement- Usually not an option in other
typically used if you have situation unless you agree to
experienced a temporary hardship very high interest rates.
that is now over and you can
resume making your regular 5. Deed in Lieu of Foreclosure-
payments. A popular option when here you voluntarily convey the
you can't pay all of your past deed to your property back to the
due mortgage payments at once. mortgage holder in order to
Here the lender agrees to move prevent a foreclosure. By
your delinquent payments to the accepting the deed, the lender
back of the loan. releases you from personal
liability on the loan.
3. Repayment Plan- the preferred
6. Sell your Home- you may choose of all Chapter 13 bankruptcy
to sell your house prior to the filings FAIL to permanently save
foreclosure auction. Lenders may a homeowner from foreclosure.
postpone the foreclosure auction This is because the
to allow you time to sell the reorganization arrangement
home. If you are unable to work typically requires the homeowner
with your existing lender, or to make plan payments that are
find a new lender, then it is much higher than the original
time to get serious about payments that they could not
selling. The longer you wait, the afford!
more likely you will need to sell
your house quickly, most likely Bonus- here's 2 more!
to an investor who will buy the
house as-is and close quickly, 8. Military Indulgence- if you
but will pay less than fair are currently active in the U.S.
market value. military you are entitled to
relief under the Soldiers' &
7. Bankruptcy- filing bankruptcy Sailors' Civil Relief Act. Most
will temporarily stop the lenders will not foreclose on you
foreclosure case. You can file if you have been granted Military
anytime before the foreclosure Indulgence.
auction. However, this should be
your LAST option, NOT your first. 9. Partial Claim Payment- there
Though it usually does not are a number of other programs
permanently end the foreclosure, available to you if your mortgage
it can interrupt the foreclosure is FHA-insured. Under this
procedure and buy you months or program, HUD pays your lender the
years without losing your amount owed to bring your loan
property. Statistics have shown current. You then begin making
however, that approximately 85% your regular monthly payments.
HUD records a 2nd mortgage our FREE Special Report
against the property for the explaining your rights in much
amount that they paid your more detail. This special report
lender. You do not have to pay reveals:
the Partial Claim mortgage until
you sell the house or the 1st " How to raise enough cash to
mortgage is paid off. bring your loan current…
" How to get a new mortgage to
In summary, the bottom line for stop a foreclosure…
stopping foreclosure is to know " How to sell your house quickly
your rights and options; contact and easily if needed…
your lender and never ignore the " What to do if you feel a
lender's letters and phone calls; foreclosure can't be stopped…
and most importantly, take action " What filing bankruptcy really
immediately. Ultimately, putting does if you're considering it…
your head in the sand will not " Several options for creating a
make it go away. fresh start…
" How to recognize and avoid the
If you would like more scam artists…
information on how to save your
home and save your credit, get
About the Author:
Steve Groom, http://www.HomeSolutionsMD.com is offering a FREE Special Report entitled, "How to Stop Foreclosure & Get the Cash you Need Fast. Call the 24-hr. message line toll-free at 1-800-761-3424, ext. #21, or get it now at the website above.
Read more articles by: Steve Groom
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