Stop Your Home Foreclosure

 


Learn How to Stop, Avoid and Prevent Foreclosure

Whether it is because of a divorce, loss of a job, or higher dues, anyone and everyone can find themselves in a situation where their homes might be foreclosed. The moment you receive a Notice of Default, you don’t have to feel pressured about it since there is still some time to remedy the problem. It’ll usually span for 90 to 120 days; still plenty of time to get things fixed. However, you must act quickly in order to prevent the foreclosure process from moving forward.

  1. The first thing you should do is to call the Loss Mitigation Department of your lender immediately. The usual answer that people from the collection department will give you is reinstatement and that is pretty hard since not everyone can pay off a large sum to update their dues. This is not a viable answer at all. Any type of solution such as forbearance will be done by the Loss Mitigation Department. However, be prepared since you will share the details regarding your financial predicament.
  2. If you choose to refinance your mortgage, you will be allowed to cash in on your equity, getting updated with late payments, as well as any incurred interest of other fees. Don’t give up if the talks between you and your lender do not end up agreeing, it may take quite some time to come to an agreement so don’t lose hope. Modifying your loan for a lower interest rate can be a quick way to stop foreclosure.
  3. Another option is selling your house. Prolonging the period before you put your house up for sale will mean less chances of getting a decent selling price for it. Offering it for an all cash transaction or a quick sell will probably give you less than how much the house is really worth. Another thing to consider would be the probable repairs. The longer you wait to sell the house, the more likely that you will spend more on repairs and maintenance.
  4. To help you during this troublesome and stressful time, it is very important to keep these following reminders in mind:

    • Never ignore the calls and letters your lender sends you.
    • Be willing to share the details of your financial situation and circumstances no matter how embarrassing they are.
    • Clearly think about your current financial situation.
    • Put all the promises agreed upon into writing.
    • Before agreeing to any deals regarding your home, talk first with a tax professional, lawyer, mortgage company representative or even Realtor to ensure that you are getting the most out of the deal.
    • Be careful when dealing with any agreements requiring you to sign over the deed of trust to your home to somebody else.
    • Be careful of buyers that rush you through the selling process.

    Also, keep in mind that lenders are not after your house. A foreclosure will cost them a big amount of money that is why they too want to avoid foreclosure.