Ways To Stop Foreclosure
A Loan Modification May Save Your Home!
Renegotiate Your Existing Home Loan
The best way for consumers to avoid foreclosure is to prevent the filing of a Notice of Default. If you know that you will be unable to meet your mortgage obligation, the first thing you should do is call your lender. Lenders do not want to foreclose but if necessary will file a Notice of Default to legally protect their interests.
Be sure not to ignore letters from your lender because a lack of a response will make the situation worse, not better. Once a lender files
a Notice of Default, your options are very limited. It is much better
for you to call your lender before falling behind on your payments because lenders are reluctant to work out repayment schedules after foreclosure proceedings have been filed.
A Loan Modification May Save Your Home
A loan modification allows homeowners and lenders to change the terms of a loan in order to help the borrower stay in the home and avoid foreclosure. It is important to note that a loan modification is not a new mortgage. A loan modification is the renegotiation of an existing loan. With a loan modification, a homeowner's:
- Interest rate may be decreased
- Interest may be changed from an adjustable to a fixed rate
- Time may be lengthened to pay the loan back
- Loan principal may be decreased
- Late fees may be waived
- Second mortgage could be waived or wiped off of the books
To apply for a loan modification, simply fill out a simple form that is available through the Loan Modification Whiz!
Avoid a Notice of Default At All Cost!
Once a Notice of Default has been filed, you will have a certain time period to bring the payments current and stop the foreclosure. You
will also have to pay the lender's costs of filing the foreclosure. This
is called reinstatement of your loan.
If you are unable to make up the missed payments and the lender
will not work out a solution for you, here are a few other options
to stop the foreclosure:
Sell Your Home
Find a reputable real estate agent and immediately place you home
on the market. You may not be able to sell it for an amount that you would hope to get, but chances are you will do better than if the home was sold at auction.
Consider a Short Sale
If your home is worth less than the amount owed on it, you might
be a good candidate for a short sale. A short sale may affect your credit but it is not as bad as a foreclosure. Your real estate agent will need to negotiate with your lender to determine if the lender will accept a short sale, called a pre-foreclosure redeemed.
Sign a Deed-in-Lieu of Foreclosure
A Deed-in-Lieu of Foreclosure is deeding the home back to the
lender. The homeowner gives the lender a legally prepared and notarized deed, and the lender then forgives the mortgage which effectively cancels the foreclosure action.
You might also work out an arrangement with the lender where
you can remain in the home until you find a place to move into.
Talk to a Loan Modification Specialist Today!
Don't let foreclosure happen to you. Fill out a simple form now to connect with a Loan Modification Specialist that may work with you to negotiate with your lender. Do it now. Time is running out!
Fill out the form now to discuss a loan modification with an experienced foreclosure prevention counselor. You must act fast to save your home! Click here for the Loan Modification Whiz!
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Refinance or Modify Your Mortgage
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Consumer Alert: Mortgage Foreclosure Scams
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