How To Avoid Foreclosure Free information and resources for people who are facing foreclosure, including options and avoiding predatory foreclosure lending scams. Statistics Unique Visitors: Total Unique Visitors: Outgoing: Total Outgoing: 3 0 0 541

Articles from How To Avoid Foreclosure

Contact Your Lender Immediately 2007-12-17 16:09:00 Many people avoid calling lenders about money troubles because we:1) Feel embarrassed discussing money problems with others.2) Believe that if lenders know we are in trouble, they will automatically rush to a collection agency or foreclosure (seize property for failure to pay a mortgage debt). But lenders want to help borrowers keep their homes because:1) Foreclosure is expensive for lenders, mortgage insurers and investors.2) HUD and private mortgage insurance companies and investors like Freddie Mac and Fannie Mae require lenders to work aggressively to help borrowers facing money problems. Lenders have workout options (choices) to help you and:1) These options work best when your loan is only one or two payments behind.2) The farther behind you are on your payments, the fewer options are available .Don't assume that your problems will quickly correct themselves:Don't lose valuable time being overly optimistic.Contact your mortgage lender to discuss your circumstances as soon as yo ...

Prioritize Your Debts 2007-12-17 16:05:00 You will need a new, tightened budget if you lose a job. Prioritize your bills and pay those most necessary for your family: food, utilities and shelter.Failing to pay any of your debts can seriously affect your credit rating, but if you stop making your mortgage payments you could lose your house. Try these suggestions to keep your home:1) Whenever possible, use any income available after paying for food and utilities to pay your monthly mortgage payments.2) If your employment income has stopped or been reduced, first consider getting rid of or cutting back on other expenses (such as dining out, entertainment, cable, or even telephone services).3) If you still do not have enough income, consider cashing out other financial resources like stocks, savings accounts, or personal property that may have value like a boat or a second car.4) Take any responsible action that will save cash.Besides speaking with your lender, you may want to contact a nonprofit consumer credit counseling agency ...

Explore Solutions With Your Lender 2007-12-17 16:00:00 First and foremost, if you can keep your mortgage current, do so. But if you find you are unable to make your mortgage payments, you might qualify for a loan workout option. Check with your lender to see which option may be available. Some options may not apply to your loan if it is not insured by FHA.If your problem is temporary - call your lender to discuss these possibilities:Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund.Repayment plan: You may be able to get an agreement to resume ...

Other Possibilities 2007-12-17 15:54:00 Sale: If you can no longer afford your home, your lender will usually give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to use the services of a real estate professional who can aggressively market the property.Pre-foreclosure sale or short payoff: If you can't sell the property for the full amount of the loan, your lender may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs. You may qualify if:1) The loan is at least 2 months delinquent2) You (or your real estate professional) can sell the house within 3 to 5 monthsAssumption: A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable.Deed-in-lieu of foreclosure: As a last resort, you "give back" your property and the debt is forgiven. This will not save your house, but it is less damaging to your credit rating. This opt ...

Predatory Foreclosure Lending Scams 2007-12-17 15:48:00 Most mortgage lenders are trustworthy and provide a valuable service by allowing families to own a home without saving enough money to buy it outright. But dishonest or "predatory" lenders do exist and engage in lending practices that increase the chances that a borrower will lose a home to foreclosure. Beware especially of those who make high risk second mortgages. Other abusive practices include:Making a mortgage loan to an individual who does not have the income to repay it.Charging excessive interest, points and fees.Repeatedly refinancing a loan without providing any real value to the borrower.Borrowers facing unemployment and/or foreclosure are often targets of predatory lenders because they are desperate to find any "solution". Homeowners receive many refinance offers in the mail saying they are "pre-approved" for credit based on the equity in their homes. Borrowing against your house may seem attractive when you are struggling to pay your mortgage and other bills. But stop and ...