If you are truly serious about finding foreclosure solutions you must set your pride aside.
Life altering occurrences such as medical expenses or loss of a job can happen to anyone, causing us to fall behind in our mortgage or home loan payments.
If we neglect paying our credit card debt it hurts our credit rating, but if we stop paying our mortgage or home loan, the situation is even worse because the lender can foreclose and take our home away.
There Are Foreclosure Solutions!
Do not assume the situation is hopeless.
Contact the lender as soon as you know the mortgage/loan payment will be late.
Do not ignore the lender's letters or phone calls. Ignoring the situation won't make it go away. In fact it can make it much worse.
Foreclosure Solutions for Temporary Problems
Reinstatement: When you are behind in your payments but can promise to pay a lump sum to bring payments current by a specific date the lender may reinstate or restore your mortgage to its normal status.
With Forbearance, you are allowed to delay payments for a short period of time, with an understanding that another option will be used later to bring the account current.
Sometimes lenders will combine Forbearance with Reinstatement if you can assure them you'll have the funds to bring your account current by a specific date.
Help For Foreclosure Might Be A Repayment Plan:
If your mortgage or loan is past due, but you can now make payments, the lender might agree to let you catch up by adding a portion of the past due amount to a certain number of monthly payments until your account is current. Again, early communication with the lender is imperative to help prove your sincerity.
Foreclosure Solutions for Longer-Term Problems
If you can now make your regular payment, but cannot catch-up with the past due amount, the lender might agree to modify your mortgage. One option is to add the past due amount into your existing loan, and finance it over a longer term. Quite frankly, there are a variety of loan modification options that may fit your situation.
Mortgage modification might also be possible if you are no longer able to make payments at the original level. The lender can modify your mortgage to extend the length of your loan or possibly take other steps to reduce your payments.
If catching up is not possible, the lender might agree to put foreclosure on hold for a specific period of time to give you the option to sell your home on your terms.
Foreclosure Solutions: Deed in Lieu of Foreclosure
If you have made a legitamite attempt to sell your home and failed, the lender may allow you to give back your property and forgive the debt. "Deed in Lieu of Foreclosure" does have a negative impact on your credit report/record, but not as much as a foreclosure.
Foreclosure Solutions For FHA Loans
If your mortgage/loan is at least 4 months but not more than 12 months past due and you can show you are now able to begin making full mortgage payments, the lender may be able to help you receive a one time loan from the FHA insurance fund.
HUD will place a lien on your property for the amount you receive from the fund. The loan is interest free but must be repaid eventually, either when you pay out your mortgage or when you sell your home.
Foreclosure Solutions For VA Loans
VA Regional Loan Centers offer financial counseling designed to help you avoid the foreclosure situation. Call 1-800-827-1000 and ask for the phone number of the VA Loan Service Representative in your area.
Foreclosure Solutions: Contact a HUD-Approved Counselor
If you have decided not to talk to your lender first, call a HUD approved counselor. A counselor can help you determine your best options and even negotiate with your lender to work out a repayment solution.
Be prepared to share all the details of your financial position with your lender and the HUD Approved Counselor. They need all the documentation in order to analyze your situation.
They will want to know the details and an explanation of your current financial circumstances including details of your present income, and a list of your household expenses.
The lender will review and analyze your situation before offering a solution to bring your loan up-to-date.
Home foreclosure help and foreclosure solutions are available provided you are being realistic about your situation.
Foreclosure Solutions: Repairing Your Credit
If your mortgage or home loan is past due, your other obligations and debts probably are too. A credit counseling agency might be able to help you work with your creditors to reduce your monthly payments by lowering interest rates or extending repayment periods.
Beware of companies that promise you quick, easy results for all of your credit problems if you pay them a large fee. You know that's not how it works in the real world.
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