How to avoid a foreclosure! When faced with a foreclosure you must have a plan!
All decisions regarding your home affect your financial picture; your credit, your future to buy a new home, a new car, or even obtaining a store credit card! Your financial picture affects all decisions regarding your home. You must have a plan! Are you facing foreclosure? Are you interested in knowing how you may be able to avoid this from happening? What steps can i take to prevent foreclosure? If you are unable to make your mortgage payment, contact your lender to discuss your options. Options are available. Learn more by researching the foreclosure process.
Steer clear of foreclosure assistance or rescue companies that want you to make your mortgage payment to them or who tell you not to talk to your mortgage company or to an attorney.
Never use any advertisement, person, or company that approaches you and claims to be able to “stop foreclosure now” for a fee.
The banks do not want your home. The money you borrowed to acquire your home is money the banks borrowed. They must pay this money back. You should understand this is borrowed money from investors; investors from other counties, the united states, as well as our federal government. These loans were sold off with a guarantee return on their money. Once the banks have theses homes back, it makes it harder for them to borrow money again.
Do not assume that your mortgage problem will quickly correct itself. Don’t lose valuable time by being overly optimistic. Contact your mortgage lender to discuss your circumstances as soon as you realize that you are unable to make your payments.
While there is no guarantee that any particular relief will be given, most lenders are willing to explore every possible option.
Here are some things that you want to consider or look into when speaking to your lender.
Forbearance: you are allowed to delay payments for a short period, with the understanding that another option will be used afterward to bring the account current.
Reinstatement: when you are behind in your payments but can promise a lump sum to bring payments current by a specific date. Repayment plan: if your account is past due, but you can now make payments, the lender may agree to let you catch up by adding a portion of the past due amount to each current monthly payment until your account is current.
Modify your mortgage: the lender can modify your mortgage to extend the length of your loan (or take other steps home. To reduce your payments). One solution is to add the past due amount into your existing loan, financing it over a long term.
Sell your home: if catching up on payments is not possible, the lender might agree to put foreclosure on hold to give you some time to attempt to sell your home. If you know that you’re not able to stay in the home this will help you out. This gives you the opportunity to start fresh without having the banks come after their money.
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