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STOP FORECLOSURE? YES YOU CAN!

Updated on July 24, 2014

ACTION NOW CAN STOP FORECLOSURE - DON'T BE A VICTIM

Although there has definitely been some improvement in the economy, foreclosure is still a very real situation for many Americans. Depending on where you live foreclosures may have increased not decreased. If you are facing the loss of your home, arm yourself with information and understand the available options.

NOW IS THE TIME TO TAKE ACTION - DON'T PROCRASTINATE

HAVE YOU EXPLORED ALL THE OPTIONS TO AVOID FORECLOSURE??

As jobs continue to disappear, more homeowners face foreclosure. The thought of losing your home, your dream, can be overwhelming. Unfortunately, too many borrowers sink into depression and fear, throw up their hands in defeat, and neglect to take any action. There are steps that can be taken to stop foreclosure.

One key to success in this endeavor is early action and persistence on your part. You must contact the lender as soon as possible to make your financial problem known. This is not the time to procrastinate because a delay can most certainly result in failure. Your home is not only one of the biggest financial investments you'll ever make, it also represents your dream and holds priceless memories.

This is the time to take action to stop foreclosure. You will need to do some research and explore the options available to you. Foreclosure laws and requirements differ from state to state. Your research should start with understanding the laws and requirements for your state. In some states, the process moves quickly. Again, you can sabotage your effort to stop foreclosure by your own inaction. It is time to act! It is time to arm yourself with information and prepare for battle with the lender.

FORECLOSURE SURVIVAL GUIDE

The Foreclosure Survival Guide: Keep Your House or Walk Away With Money in Your Pocket
The Foreclosure Survival Guide: Keep Your House or Walk Away With Money in Your Pocket

This is an excellent book for anyone facing foreclosure. It will help you decide what options are available - is it time to walk away or fight foreclosure.

 

LOAN MODIFICATION TO STOP FORECLOSURE

YOU CAN DO YOUR OWN MORTGAGE MODIFICATION

LOAN MODIFICATION TO STOP FORECLOSURE

Under President Obama's plan to keep responsible borrowers out of foreclosure and in their homes, the mortgage modification plan is an excellent option. Contact the lender to find out if you meet the criteria. As you take the first step, begin a log and take notes during this phone call and every subsequent call. Your log should include date, time and name of the lender's associate as well as your comments. Stay organized! Before you make the call, be sure you have the right attitude. Remember, you are not in control of the situation. You need to remain calm, pleasant, polite and firm.

The lender will require details about your current financial situation. To prepare for these questions, you will need to do a thorough financial inventory. What is your income? What are your expenses? How much money remains after paying these expenses? The bank will need a complete list of assets and liabilities. This information should be complete and accurate. Yes, this inventory process is a chore, but it is crucial to your successful mortgage modification.

One of the lender's first questions will be: "Why do you need a mortgage modification?" To support your need for the modification, the lender will require a hardship letter from you. This letter will explain what happened to create your current financial dilemma and when the situation first occurred. For example, a job loss, decrease in salary, or major medical problem that prevented employment. As you compose this letter, be concise. The letter should include your name, address, lender's name and the loan number. When the letter has been completed, spell check it and read it aloud. Yes, this involves some time and energy but remember the goal: stop foreclosure of your home. After you have explained the problem, offer the lender a solution. Of course, at this point, you will suggest the outcome you are seeking. For example, "We feel that a loan modification will be advantageous to both of us."

ARE YOU UNDER WATER WITH YOUR MORTGAGE

Underwater Home: What Should You Do if You Owe More on Your Home than It's Worth?
Underwater Home: What Should You Do if You Owe More on Your Home than It's Worth?

Learn the steps you should take if your mortgage is under water. This book will guide you through the process.

 

FORECLOSURES CONTINUE TO RISE

New unemployment numbers are in - we are at an all time high. More foreclosures will follow - TAKE ACTION NOW TO SAVE YOUR HOME

THERE IS LIFE AFTER FORECLOSURE

Life After Foreclosure
Life After Foreclosure

First of all, you are not alone if you are facing or have already faced foreclosure. This is one of the most emotional life changing events and this book will help you understand what to expect going forward. You probably have a million questions about the affects of foreclosure on your credit, your very life - this book answers those questions.

 
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MORTGAGE FORBEARANCE AGREEMENT TO STOP FORECLOSURE

USING A FORBEARANCE AGREEMENT TO STOP FORECLOSURE

If your loss of income is a temporary situation, you can explore the possibility of a Forbearance Agreement. Because this requires lender approval, you will need to work closely with the lender. In summary, the Forbearance Agreement allows the borrower to remain in the house and it protects your credit score, other than any late mortgage payments. The borrower agrees to keep mortgage payments current going forward. The Forbearance Agreement includes a repayment plan for the delinquent payments as well as all accrued fees. In general the Agreement will postpone or reduce the payments for a limited specific time period. During this time frame, interest accrues and remains the borrower's responsibility. This accrued interest is added to the principal balance of the loan. The lender agrees not to foreclose as long as the borrower remains in compliance with the Forbearance Agreement. It should be emphasized that this is not a long term solution but can be very helpful to borrowers with a temporary loss of income. To explore this option, the borrower should contact the lender's Loss Mitigation department.

STOP FORECLOSURE WITH A SHORT SALE

USING A SHORT SALE TO STOP FORECLOSURE

A short sale is described as a sale of property where the net proceeds from the sale are insufficient to pay off the existing mortgage. Using a short sale to stop foreclosure is not the most pleasant route for a borrower. However, if other options are not available to the borrower, it may stop foreclosure. The short sale requires the lenders approval. The borrower needs to prove that a financial hardship exists. Again, this will require a hardship letter (described above under Mortgage Loan Modification). Frequently borrowers are required to bring money to the closing to finalize the transaction. In the current economic climate, lenders may be willing to negotiate a short sale because it is usually faster and less expensive than foreclosure. A short sale will adversely affect your credit although it has less affect than a foreclosure. Borrowers should consult a real estate attorney when considering a short sale.

REFINANCE TO STOP FORECLOSURE

A REFINANCE MAY STOP FORECLOSURE

It is possible for borrowers to stop foreclosure by refinancing the mortgage. If a mortgage is delinquent as the result of an ARM loan that was reset and substantially increased the payment, an FHA refinance may be possible. For borrowers in this situation, there are other requirements for qualification. The borrower's ARM interest rate was reset, a good payment history until the reset, verifiable consistent income, and the income must be sufficient to make the mortgage payments as well as other monthly expenses. With the current low interest rates and relaxed qualification requirements, borrowers that can refinance should seize the opportunity.

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BANKRUPTCY TO STOP FORECLOSURE

THE TOOL OF LAST RESORT - BANKRUPTCY

While it is true that bankruptcy may stop a foreclosure, this is definitely a tool to be used as a last resort. Bankruptcy will stop the foreclosure and allow time to work out a plan to keep the home. For some borrowers, this may be the ideal option. Bankruptcy is a complicated process and requires the advice and assistance of an attorney that specializes in bankruptcy law. Borrowers need to note that your credit score will be adversely affected for several years.

FINAL THOUGHTS

A FINAL NOTE REGARDING FORECLOSURE

Anyone facing foreclosure needs to actively and persistently explore the available options that can stop foreclosure. The lenders do not want to own your home. It is advantageous for both lender and borrower to stop foreclosure.

BE PROACTIVE AND STOP FORECLOSURE

Foreclosure Self-Defense For Dummies
Foreclosure Self-Defense For Dummies

If you find yourself facing loss of income and/or foreclosure, you can get some great tips and help from this book.

 
American Foreclosure: Everything U Need to Know About Preventing and Buying (Everything You Need to Know (McGraw-Hill))
American Foreclosure: Everything U Need to Know About Preventing and Buying (Everything You Need to Know (McGraw-Hill))

Arm yourself with knowledge and understanding your rights when it comes to foreclosure.

 
23 Legal Defenses To Foreclosure: How To Beat The Bank
23 Legal Defenses To Foreclosure: How To Beat The Bank

There are definite actions you can take to stop the foreclosure. You'll find great ideas here.

 
How To Avoid And Stop A Foreclosure - Ex Banker Tells All
How To Avoid And Stop A Foreclosure - Ex Banker Tells All

This book provides direct answers to questions you may have if you're facing foreclosure. Highly recommended!

 

Please leave your comments.

THANKS FOR VISITING

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    • profile image

      prominentescrow 3 years ago

      I was looking for this kind of stuff to learn more about foreclosure.

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      jessicabrownn6 5 years ago

      nice informative blog. As we know that for people that are employed and buried in debt, the best thing to use to stop foreclosure now is a Chapter 13 bankruptcy. This of course is for individuals that don't qualify to file Chapter 7 bankruptcy.

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      mortgageeducation 5 years ago

      Great lens. I'm always looking for informative content to help Maryland Mortgage foreclosures to send in my newsletters and link on my blog posts.

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      jasonjones4217 6 years ago

      Wow ! Thanks for the useful advices.

      Las Vegas Foreclosures

    • profile image

      hazelhudges 6 years ago

      Great Help! I love it......

      Hey thanks for sharing this. It's been a great help. Keep writing.

      Cape Coral Properties