Has the recession caused your home to be foreclosed? Has it caused you to fall behind on
paying your mortgage? Did it cause older homeowners that you know to fall behind on their
mortgages? Did the results of the recession cause the foreclosure rates to increase in your
community? Do you believe that this crisis can only get worse instead of better at some point?
Well here’s some helpful advice that can help people prevent foreclosure in their home life.
There are many ways in which you can prevent foreclosure. You can commit yourself to an
early intervention by contacting your mortgage lender immediately if you’re having trouble
with paying your monthly mortgage. If you received a letter from your home lender then you
shouldn’t ignore it but clearly explain your circumstances. Also be prepared to provide your
home lender with your current financial information; such as monthly income and expenses. By
coming up with any delinquent payments; including any costs related to the foreclosure you
can actually prevent the foreclosure. It’s also very important that home owners remember to
use registered or certified mail in all of their correspondence on legal matters.
There’s also many different alternatives that can help people better deal with foreclosure.
There’s the “Special Forbearance” where your lender might arrange a repayment plan that will
be based upon your current financial situation and it could provide for a temporary reduction
or suspension of your payments. If you’ve recently experienced an involuntary reduction in
your income or an increase in living expenses then you would qualify for this alternative.
Another option is “Mortgage Modification” where you can refinance your debt and increase the
term of your mortgage loan. This’ll allow you to catch up on your mortgage by hopefully
lowering the monthly payments to a more affordable level. You can only qualify for this if
you’ve recently recovered from a financial problem but your net income has to be less than
what it was before the default.
If you don’t care for any of these alternatives then you can turn to “Partial Claim” where
your lender might be able to work with you so that you can obtain an interest-free loan from
HUD. Or you could go with the “Pre-Foreclosure Sale”; which allows you to sell your property
and pay off your mortgage loan in order to avoid foreclosure and damage to your credit rating.
You could also sell the house yourself before the foreclosure sale and save some of your equity
if you can’t afford the house long term. The “Deed-in-lieu of foreclosure” is the last resort
where you can voluntarily give your property back to your lender. However this won’t keep
your home but it can help you get another mortgage loan in the near future.
On the other hand, if you’re a senior citizen or disabled then you can postpone payment of
your property taxes or special assessments under foreclosure...