You can stop home foreclosures. Losing your home is not a given. You need to start right away if your home is in danger of foreclosure due to a non-payment of your mortgage. These steps are not hard and all that is needed is the know-how and some determination to keep the house. More than likely the determination to keep it is already there, so read on for some tips and insider tricks for stopping home foreclosure.
Denial is the biggest mistake most homeowners make when they face foreclosure. They simply do not take action because they feel embarrassed or are too upset to look at the problem head on. They would rather just ignore the collection calls and the letters than take the problem as it comes. If you can take a stand and not stick your head in the sand, you can many times stop the home foreclosure very simply.
Once you see that you might have problems in paying the home loan for a couple of months, then the first thing to do is contact the lender and work out a solution or new payment schedule. Nip it in the bud. It depends on the individual situation, but many times the lender will allow you more time to make payment, or create a new schedule so you can avoid the home foreclosure. Dodging them is not the answer.
There are times the lenders may even buy the house from you and forgive the loan. All the lender wants is to get the money that is owed them. By keeping the communication lines open you can avoid home foreclosure in many cases. The lenders will consider you to be responsible about your finances, and be willing to work something out. If you reach a solution with them, then you have avoided foreclosure and saved your credit rating.
2. Alternate Financing
The main reason for foreclosure is the inability to pay the loan, just can’t afford it. Sometimes this is due to the loan being too big for their income. Other times it is due to some unforeseen catastrophic event, like losing a job, or maybe a sudden illness. So if your loan payments are just too high for you, there are a few things available to help you stop the home foreclosure:
1. The first thing you can try is to refinance the loan. The lender could be willing to refinance and give you a smaller monthly payment for a longer term. Then you will be able to afford the payments.
2. Liquidate some of your assets. If you can sell some assets or some property, it can go a long way toward paying off the debts and any arrears, and set you back on the right track financially.
3. Get some refinancing through other lenders. Lots of lenders are available to compete to get your business. And many of them are willing to offer refinancing on your loan. You will end up paying more over the long term, but you can stop the home foreclosure and get you payments to where they are manageable.
3. Find Alternative Methods For Stopping Home Foreclosure
If the situation you face is very serious, and negotiations with the lender or refinancing are not going to solve your problem, the try to involve a third party investor. If you offer the home in a pre-foreclosure sale, lots of times you can actually make money. This helps preserve your credit rating, preserve your home equity, and stop the foreclosure at the same time. There are many cases where you get to keep the home as well. Any time you are not able to pay the mortgage, letting the home go as quickly as possible can be the best solution. There are always opportunities for buying foreclosure homes in the future that are more affordable