The Programs May Differ, But They Share A Common Goal: To Stop Foreclosure

Category: Finance, Mortgages.

It is an unfortunate reality that thousands of people are currently facing the possibility of losing their homes to lender foreclosure.

Many of these loans featured attractive payments for the first few years, but those low payments are expiring and many people now have the task of trying to stop foreclosure. The fact is that over the past several years, more and more people were put into risky loan products that appeared sound on the surface, but were really awash in consequences. Perhaps the single most important step any one can take is to contact the lender before defaulting on the loan. The programs may differ, but they share a common goal: to stop foreclosure. Almost every lender in this country has a program or two specifically for people to avoid foreclosure proceedings from taking place. When you contact the lender directly, you will be advised of the programs for which you qualify, which can range from restructuring of the existing loan, or enrolling in, refinancing the loan a workout type plan. Know that no matter which option you choose, it will likely cause a dip in your credit score, but it is still nowhere near as low of a decline in rating than you would experience if you did not stop foreclosure.

Any of these can be viable options, depending on your situation and how far behind you are. The reason they will work with you in most cases is that it is to their benefit to stop foreclosure, because they rarely, as well get all of their money back when they take possession of your house. Sometimes the lender has unrealistic terms for your new plan, and there is no way that your budget can accommodate that, either. Unfortunately, this does not always work out. So at this point, the best way to stop foreclosure may be to put the house on the market. However, if you live in one of the many depressed markets across the nation, then selling your home quickly, and for the price necessary to satisfy the mortgage, probably won' t happen.

If the real estate market in your area is hot, then you should be able to sell the home to stop foreclosure. Now, when loans begin to default, investors often get that information and are quick to offer deals to you. If you choose this option to stop foreclosure, you will have avoided the pitfalls associated with having a foreclosure on your credit history, which will compromise your ability to secure another loan on a new house. If you are considering this, checkout the company and make certain that the deal they offer is one they can honor. In the future, you must be wary of specialty loans from sub- prime lenders, or you will find yourself in the same boat again, trying to stop a foreclosure from happening. If they can offer you a workout plan, or even a, a restructure refinance of the loan, then you can get out from under the possibility of losing your home. Overall, the first step, to stop foreclosure is to talk to the lender directly.

If these options do not work, then it may be time to stop foreclosure through the sale of the home. Whatever the situation, just know that to stop foreclosure, you need to be proactive in the process, because the lender is not going to stop the proceedings because they feel badly for you- the only way to stop foreclosure is to fix it, and fix it quickly.