Where Can I Get Foreclosure Help And Assistance?
This article discusses places where you can obtain help regarding foreclosures.
It includes 5 steps to help you before, during, and after a foreclosure.
If you’re facing foreclosure you’re probably looking for a way out, either
with your home or without. This problem did not start overnight and it
will not go away quickly either. It takes time, commitment, and expertise.
Before pursuing any of these solutions a real estate attorney needs
to be consulted to make sure that your chosen solution is the one right
for you. In any case, there are five foreclosure solutions many of which
can be enacted now to either get you of foreclosure or stop foreclosure
from happening. Please keep in mind any default on a loan will be on
your credit report for 7 years.
Solution1: Answer the phone
When we’re in-debt the first thing we do is to avoid the banks asking
for money. Talking to the bank can help you arrange something to pay
back the money you owe and catch up on your payments. Often times they
will allow you pay only interest and tack the principle onto the end
of the mortgage. While this is not a long term solution it can help you
get back on track.
Solution 2: Sell your home
It can be a tough step to think about but selling your home
can stop foreclosure. However, this is not recommended due to the very
slow housing market. There is no guarantee that will be able to sell
your home in time, or for enough money to satisfy your mortgage obligation.
You can also short-sell your home but there is also no guarantee that
it will sell for enough money to satisfy all your debts.
Solution 3: Loan Modification
Renegotiating your loan to your advantage can also help you bring
your mortgage payment back down to something more manageable. Re-negotiation
can:
• Decrease the loan’s interest
• Fix the rate from an adjustable
• Lengthen the time of the loan,
shrinking payments
• Change the nature of the loan entirely
Solution 4: Short-Refinancing
Short refinancing is a loan is initiated to help reduce the
amount of money owned by a borrower behind on their mortgage payments.
The new loan amount is typically set at the current market value of the
home, which is often less than the existing loan amount. In most cases
the lender forgives the difference between the new and old loan. A lender
will often agree to a short-refinance in order to keep a borrower in
the house, as it is generally more cost effective than proceeding with
a long and expensive foreclosure.
Solution 5: Deed in Lieu
Much like selling your home, but much better. Basically, the process
is entered into voluntarily by both the lender the borrower willingly hands over the property to the lender in exchange the lender
releases the borrower of all obligations on the default amount. This
is attractive if the price of your house has remained the same or has
gone up. This saves the lender a great deal of money.
Here are 5 solutions that can help you overcome the foreclosure hump.
Don’t worry, there is hope for your situation and one of these 5 solutions
can work for your unique situation. The most important thing of all is
to pick up the phone and start talking to your lender that is truly step
1.
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