Stopping Foreclosure - Educate Yourself

Once the moment has arrived and you're holding the notice in your hand, many people think that stopping foreclosure isn't a possibility. It's inevitable that you'll lose your house. Although this is true in some instances, it isn't true in many. Instead of panicking, educate yourself and find out what rights you have and what you can do about it.First, let's assume that you haven't received the notice yet. There's still a possibility of avoidance, rather than stopping foreclosure. Here are a few reasons why foreclosures happen:o Losing your jobo Medical emergencies or severe illnesso Death in the familyo Too much debto Your interest rate increasesAvoidanceObviously, the best way to avoid foreclosure is to make timely payments. Unfortunately, this isn't always possible. Ignoring your lender will cause them to file a Notice of Default to protect their interests, even when they don't want to foreclose. Calling them as soon as you know you can't pay can save you a lot of time, he
artache and, ultimately, your house.Your lender will usually give you options, as they would prefer your payments to the foreclosure process. Some of those options could be:o Forbearance - Your lender may be willing to wait, and work with you on an affordable repayment plan.o Debt Forgiveness - There's a slight possibility that your lender may decide to waive your obligation.o Repayment - Your lender may allow you to spread the payments out over time. For example, paying 12% of the past due amount each month, for 12 months.o Note Modification - It's possible for the lender to freeze the interest rate of an adjustable loan, or change it to a less costly rate.o Refinance - Your lender may allow you to add the back payments to your loan balance and re-amortize your loan.Stopping ForeclosureOnce the foreclosure proceedings have started, you'll have a little time to pay your back due amount, the costs of filing and stopping foreclosure. Then, your loan will be reinstated. However
, you may be in a position where you can't make the missed payments, or the lender won't work with you. In this case, you have three options:Option #1: Sell your home. Compare the differences between discount brokers and full-service brokers, and get an opinion of your home's market value.Option #2: Consider a short sale. Short sales are considered when your home is worth less than what you owe. Although a short sale will affect your credit, it won't affect it as much as foreclosure. If your lender will cooperate on a short sale, it's called a pre-foreclosure redeemed.Option #3: Sign a Deed-in-Lieu of Foreclosure. In other words, deed the home back to the lender. Unfortunately, while the lender forgives the mortgage, stopping foreclosure, a deed-in-lieu affects your credit as badly as a completed foreclosure.Receiving a foreclosure notice doesn't mean it's absolute. Stopping foreclosure is always a possibility. Educate yourself!

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