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On the verge of losing your home? Do not just sit down, fret, and do nothing. Look for ways to stop foreclosure, help comes in several ways. They come in the form of the US government, through a loan modification company, or by simply negotiating with your lender yourself.
Stop Foreclosure! Help From The Government is Available
The government, through the US Housing and Urban Development, has been formulating ways to assist financially struggling homeowners who are faced with foreclosure. It has intervened to exercise some control over the activities of lenders so as to protect the homeowners. It has also been coming up with various programs to help put an end to the spate of foreclosures. This includes the Emergency Homeowners’ Loan Program or EHLP, the US Treasury’s Hardest Hit Fund Initiative, HOPE NOW/ Making Home More Affordable Outreach, and the Homeownership Preservation Foundation. Many states also offer their own local foreclosure resources to these homeowners.
Stop Foreclosure! Help Comes in Several Ways
Besides the Obama administration, the private sector also has several forms of help for homeowners looking to salvage their homes. This includes loan modification companies and attorneys specializing on this matter. Home loan modification companies, both the legit and the scheming types, have also mushroomed everywhere offering help to distressed homeowners. When going down this route, make sure to carefully choose whose assistance to employ. There are HUD-approved housing counseling agencies who can supply you with information and help you require to dodge foreclosure. With their help, you can avail of the administration’s Making Home Affordable loan modification or refinance so that you can arrange for a reduction in monthly payments and help you retain your home. Visit the HUD website to choose from a list of qualified counseling agencies in your area who can provide you with advice and foreclosure prevention services for free.
Stop Foreclosure! Help Yourself By Contacting Your Lender
Besides seeking the help of a third party, you can also directly talk to your lender to re-negotiate the terms to make it more affordable to you. Yes, get in touch with them instead of avoiding them even if you have been delinquent in your payments. Do not wait for your dues to run more than two months behind. You will lose more options, the more behind you are in your payments. This means that you need to get in touch with your lender as soon as you have difficulty paying for your mortgage. Your lender can offer you various workout options, such as forbearance, reinstatement, repayment plan, loan modification, or claim advance.
There are a number of ways to help keep your home. If you are about to lose your home, do not panic. Assess your situation and then decide on the best way for you to stop foreclosure. Help will come in the option that you choose.
Foreclosures nowadays are becoming as ubiquitous as the latest gadget. You can find them everywhere; you can even find them in your neighborhood and chances are, you could be facing it yourself. If you are, here is a practical home foreclosure help that you can apply in your case to wriggle your way out of this predicament.
You have to remember that help is available to those who are facing foreclosure. You have to do something and find help. You cannot just allow letting go of things because if you do, you will definitely find yourself in the streets before you know it. Needless to say, nobody wants to find himself in the streets but it amazes me that you can certainly find people who are allowing this to happen just by doing nothing over their situation. If you are willing to help yourself, here are some things that you can try to work out with your lender in order to prevent foreclosure from happening.
Try an Interest Only Payment for a Home Foreclosure Help
Depending on how effective you are in convincing you lender, the amount defaulted and the time that have lapsed, he may be willing to let you pay only the interest for a couple of years. You can also agree on modifying the loan term and getting your loan payment lowered. This should give you the time needed to get your finances back on track. Remember that often times, we all need the time to get our acts together and work out a plan to set our finances straightened out. If your lender allows you to get this kind of plan, you must make sure that you can pay the interest in a given length of time.
Consider a Half Payment as a Home Foreclosure Help
There are some good natured lenders who will allow their borrowers to pay half the monthly interest rate if they feel that this is a good solution to get them back on track. This can also mean that the loan term will be changed into a longer period. Although this is very rare, there are a lot of kind hearted lenders who believe in working out with their clients rather than going after them. Thus, you should still try to ask your lender about this option. It doesn’t hurt to try.
If You Qualify, Consider a Short Sale for a Home Foreclosure Help
Although short sale will result in you losing your home, the good thing is, it will not result in foreclosure and it will not affect your credit rating as much as a foreclosure. This is the reason why this is very popular among those who are facing foreclosure.
In this solution, you will have to sell your home at a value lower than your loan. You will then pay the proceeds of the sale to your lender. If there are deficiencies in the payment, you still have to pay the outstanding balance. If you can convince your lender, try to ask for debt forgiveness so that you no longer have to pay for the remaining debt. Again, debt forgiveness is very rare nowadays but still there is no harm in trying.
Make sure to negotiate with your lender a home foreclosure help plan before losing your home. In fact, before you receive that Notice of Default, make efforts to meet with your lender and explain your part. You see, you have to do something and be proactive, otherwise you will lose your home. Remember that there are options available for you and if you lose your home without making a move, you are to blame.
Every home owner, with the exception of those who are planning to do mortgage fraud, would not want to face foreclosure. They would want to stay in their homes at all cost. Those who are already into it are most likely regretful and are thinking back to the days when they first got the property. To help stop foreclosure, you need to know the reasons behind it and what are the ways to avoid and stop it.
Help Stop Foreclosure by Knowing the Reasons Behind It
Some of the reasons listed below may sound obvious but if you are not careful, it’s easy to fall into these traps and find yourself facing foreclosure. When any of these happen to you, you should be prepared and find ways to lessen its blows.
- Unexpected job loss
With the present economic problems, it’s easy to find yourself getting retrenched from your job. When this happens, you should not lower your guard down by allowing despair to set in. Go seek a new job and don’t waste time.
- Sudden medical emergency
No matter how hard we try to avoid it, we or some other member of the family will get sick sooner or later. Hospital bills can be a burden even when you have insurance.
- Loss of a second income
Maybe you got divorced and the second income from your partner is removed. In this case, you really have to adjust your present expenses.
- Too much debts
Are you in tangled with too much debts? Normally this would affect your finances, in fact, debt is the number one reason why people get foreclosed.
- Other emergencies
On top of these things, there are other emergencies like natural calamities that do occur and can greatly affect your budget especially because there is no perfect way to prepare for them.
Help Stop Foreclosure by Knowing the Ways to Avoid It
If something happens to your source of income, the best way to avoid foreclosure is not to wait for the Notice of Default. Meet with your lender as soon as possible and work out a plan with him so that you can continue to pay your mortgage. Here are some options that he may give you:
- Work out a repayment plan
Ask your lender to forego legal actions and arrange a repayment scheme that is affordable to you. Most lenders will allow this rather than go through the legal hassles because litigation is expensive.
- Debt forgiveness
Although this rarely happens, your lender might waive your obligation and make you start with the next monthly obligation. Just try your best to convince your lender about your present financial situation.
- Spread the missed payment
You can also agree to spread the missed payment across your monthly payment. This way, it will become affordable to pay for the missed payments.
- Change the terms of the loan
Another way to make the mortgage affordable for you is to change the amortization period. You can also agree to freeze the interest rate before it becomes unmanageable or change the interest rate into a more affordable one.
- Include the missed payment to the loan balance
You can refinance the loan if you have enough equity and all the lenders guidelines are met. This will increase your loan balance because the missed payments will be added to it.
- Make a separate loan
There are some government loans that allow partial claims. If you meet specific criteria, you can apply for another loan in order to pay for the missed payments.
Help Stop Foreclosure by Knowing the Ways to Stop It
Although lenders don’t necessarily want to foreclose on you, they will still have to file for a Notice of Default in order to protect their interests. When a Notice of Default has been filed, your options now will be limited. Here are some of the ways to stop foreclosure:
- Short Sale
You are a good candidate for a short sale when the property you are in is worth less than the amount that you owe your lender. Although you still have to pay the remaining debt, short sale is still a better option than getting foreclosed.
- Deed-in-Lieu of Foreclosure
In its simplest terms, deed-in-lieu of foreclosure is selling your property back to your lender. He will prepare a well notarized deed and you give back the property to him. This will effectively cancel the foreclosure.
These are some of the ways in which you can help stop foreclosure. Remember that nobody would want to be in this predicament because we all want to stay in our own homes.
With the present economy going haywire, foreclosure is getting as rampant as it gets. This being the case, you need help with foreclosure because this is not something that you should face alone.
For most of us, our job is our only option to get a steady income but, with the current rate of retrenchments, it is not surprising that a lot of us will also default with our mortgages. With this comes the huge possibility of getting foreclosed. In this article, let me give you some practical advice that you can do when facing a possible foreclosure scenario.
In Order To Get Help With Foreclosure, Do not Ignore the Letters from Your Lender
If you had been in default with your mortgages, chances are you already have received various letters from your lender. Do not ignore these letters but rather, take them seriously because these are evidence that you had been warned of your delinquency and its consequences. The best thing to do is not to wait for any letters but rather, to communicate right away with your lender when any unfavorable changes in your source of income occur. Call or write to your lender without any delay and explain your situation. Be ready with your financial information such as a list of your income and expenses because without this, they may not be able to help.
Stay in Your House and Wait For Help With Foreclosure
If there is an impending foreclosure, do not leave your home immediately. This will give the lender the idea that you are no longer interested with your property and that you are pushing him to foreclose you. Added to that, you will no longer qualify for any assistance if you leave your property. This will lock you into the possibility of getting foreclosed because you have neglected all your options.
Contact a HUD-Approved Counseling Agency for Help With Foreclosure
When you need help with foreclosure, you must contact a HUD-Approved Counseling Agency. These agencies are there to help you and clarify whatever confusions you may have. They can even give you options that you can present to your lender so that you can work out plans to continue paying your mortgages. They also have information on services and programs offered by both Government and private agencies that might be useful to you. Remember, their services are offered free of charge.
Things That You Should be Aware of When Seeking Help With Foreclosure
Just as with any transaction involving money, there are a lot of precautions that you should take when seeking help with foreclosure. You need to give special attention to scams like:
- Equity Skimming
This type of scam is done by persons disguised are “buyers” who would tell you that they would help you with your financial troubles by paying your mortgage when your property is sold. They would then ask you to deed your property to them and that you leave your property quickly. Then they would rent out your property and allow the lender to foreclose.
- Fake Counseling agencies
There are some people who would disguise themselves as counseling agencies and offer to perform certain services for a fee. Before trusting these type of people, you better check if they are HUD-approved because if they are, then they would not charge for their services.
When in need of help with foreclosure, follow these practical steps because these will surely help you out of your predicament. You should not allow things to grow from bad to worse because there are ways to wiggle out of foreclosure.
Foreclosure is a downhill course with no breaks and pedals. If you default with one payment, expect to find yourself in the streets in matter of days. This can vary from state to state but in the Texas, you can expect to be evicted in as few as 30 days. Needless to say, you need foreclosure help.
On the bright side, lenders especially banks realized that it is better to keep you in your home than kick you out of it because the prices of houses are dropping fast and the industry standards are changing. This means that nowadays, lenders would prefer to work out a plan with their borrowers in order for them to keep paying their mortgage and keep them in their homes. So if you find yourself in the brink of foreclosure, don’t panic because there are a few things that you can do.
Be Honest with your Lender and Seek Foreclosure Help
The first step to the road to financial recovery is to be honest with your lender. In most cases, borrowers who had been defaulting in their mortgages would avoid seeing their lender and allow the situation to progress from bad to worst. If you do this, then you are only adding fuel to the already cooking foreclosure. What you can do instead, is to see your lender immediately and tell him of your financial situation and ask for plans that you can work out so that you can continue paying your mortgage. As already mentioned, lenders don’t want to evict you right away but rather, they want to work out a plan with you because it is contrary to their interest that you stop paying your mortgage.
You have to remember that there are so many alternatives to foreclosure and your lender may be the expert that you need to help you out. Here are a few:
- Special Forbearance
If you’ve experience a sudden reduction of income or an increase in your living expenses, you may seek a special forbearance. Provide your lender with the necessary information proving this sudden change so that he will be convinced that you qualify for this new payment plan. By special forbearance, you may be allowed to suspend your payment temporarily or reduce it.
- Mortgage Modification
You can refinance your debt and lengthen the term of the mortgage. Mortgage modification will help you catch up with the debt by reducing the monthly payment to a more affordable amount.
- Partial Claim
Through a partial claim, your lender will help you obtain a one-time payment from the FHA Insurance fund. The US Department of Housing and Development will pay to your lender enough amounts to make your debt current. On your part, you have to execute a promissory which you will have to pay it when the first mortgage is paid off or if you sell your property. You will qualify for a partial claim when your mortgage is at least 4 months delinquent but not more than 12 months and you can begin to pay full mortgage payment.
- Pre-foreclosure sale
Pre-foreclosure sale will allow you to avoid foreclosure by selling your property at an amount less than what is necessary to pay off your mortgage. This is of course with the agreement that you will still pay for the outstanding balance. You will qualify for this if your loan is at least 2 months unpaid, you can sell your property within 3 to 5 months and the new appraisal of your property meets the HUD guidelines.
- Deed-in-Lieu of Foreclosure
If all of the above solutions fail, you can still avoid foreclosure by giving back your property to your lender. Although you will lose your house, you can still be saved from foreclosure and your credit rating still remains intact.
Examine your Income When Seeking Foreclosure Help
When you finally summon all your strength to meet with your lender, ask him to help you examine your income. He would usually advice you to get 31% of your pre-taxed income and use that to pay your mortgage. Since this is a big amount that would be taken from your income, consider quitting things that are not so important. This can mean quitting your gym membership and start working out at home instead, changing that kind of food that you eat with cheaper alternatives and stopping night outs and start sleeping early. In short, start living within your means.
The most important thing to do when facing foreclosure is not to panic. Panicking will lead to despair which will prevent you from thinking soberly and seek solution to your situation. Just always remember the several ways on how to get foreclosure help.
The Scenario for a Loan Modification in Broward County Florida
Broward County Florida might be the best destination for tourists as far as The Sunshine State is concerned, but it is greatly affected by the economic recession and a lot of the locals are facing foreclosure. In the last few years, there had been 100,000 foreclosure processes initiated and the number is rising. One of the many reasons behind this is the fact that huge number of mortgages are given to people who are not able to take the financial burden from the get go. This is the usual case for those zero down payment loans which often cover up with monthly rates what it lacks for down payment. In some cases, a short sale is not even an option because even if the houses are sold at prices way below their appraised value, there are so few interested buyers. In order to avoid foreclosure, a loan modification in Broward County Florida has been resorted to by some in the locality.
How to Become Eligible for A Loan Modification in Broward County Florida
If you have considered loan modification as a way out, you should first check your eligibility. The first thing that you should do is to determine that the cost of the property you’ve mortgaged does not exceed the limit of $730,000. If it does, then you are not eligible. Next, you need to find out your current financial statistics by getting the figures of your monthly employment income, insurance, incentives, taxes and debts. Loan modification usually works by arranging a functional payment scheme by reducing your monthly expenses. The new payment scheme that the bank will usually offer you is based on 31% of your pre-taxed income. Remember that it is not possible to avail of a loan modification if you have taken the loan for less than a year. This is primarily because it is not possible for your income state to change in such a short time. But in cases wherein you are experiencing an unforeseen event like a loss of job, you can talk to your lender and present your case accordingly. Since it is in the bank’s interest that you pay your mortgage, although they won’t make key adjustments to your lease, they will surely reduce the penalties and other fees that you may have. Other measures will be done as well like reduction of interest rate and prolonging the term in the contract.
A Loan Modification in Broward County Florida – The Key to Making A Successful Mortgage
The key to making a successful mortgage payment is cooperation between the lender and the borrower. If you fail to pay your mortgage, this is a failure for the bank as well. In Broward County Florida, loan modification programs had been very successful in enabling a lot of home owners keep their homes. A lot of home owners have re-possessed their homes after getting a loan modification and negotiating with the bank.
Today’s economic meltdown has caused a lot of people to lose their jobs. There is little wonder that a lot of people are also lagging behind on their mortgages and if the downhill course will continue, will face foreclosure. Before that will happen, here are some practical foreclosure help that may save your property and will allow you to stay in the place you call home.
The First Foreclosure Help is to Analyze Your Financial Situation
Some people, when they are faced with a dire situation like an impending foreclosure, would panic. This should not be the case, instead, you should sober up, face you situation and analyze it properly. The first thing that you should look at is your spending and your income ratio. If you are living beyond your means, then you would normally have problems. Literally list down your monthly and daily expenses and delete from the list those that you can live without like gym membership, movies, cafes and night outs and simplify your lifestyle. You would be surprised at how much savings you can make if you do this.
Another advantage of simplifying your lifestyle is that you can focus your energies with what matters most and that is to pay your mortgage and avoid foreclosure. When you begin to focus your energy, you will surely realize that things are beginning to change in your favor.
Communicate with Your Lender and Seek Foreclosure Help
Another error that a lot of people make when facing a potential foreclosure is to avoid communicating with their lenders. This should not be the case considering that lenders are not interested in foreclosure, but would rather do everything so that you can pay your mortgage. You see, foreclosures are costly and time consuming and most if not all lenders would rather work with their borrowers and help them pay rather than foreclose them outright.
So instead of avoiding your lender, communicate with them and inform them of your current financial situation. Provide them with the information concerning your income and expenses and ask them for advice. If the lender is fully aware of your financial situation, they might come up with a new payment scheme or stop your payment for a little while just to give you some breathing room.
Consider a Loan Modification for a Foreclosure Help
If you communicate with your lender there is a possibility that you could get a loan modification as a foreclosure help. Loan modification prevents foreclosure by changing the terms and condition in favor of the borrower. This can be a reduction in the interest rate, a change from floating to fixed rate, reduction of the capital, limiting the monthly payment to a percentage of your income, reducing the penalties and other fees, lengthening the loan term and mortgage forbearance program. Any one or more of this will be done just so that you can pay your mortgage again on the regular basis.
This can also work in favor of the lender because you have to remember that you are both trying to avoid foreclosure because it is disadvantageous to both parties. Lenders know that they are better off working with their clients than going after them.
Consider Short Sale for a Foreclosure Help
Another way that you can work out with your lender to avoid foreclosure is a short sale. In this method, you would end up losing your property but you still save yourself from the inevitability of foreclosure. In this case, you would have to sell your property at a price lower than its appraised value and pay its proceeds to your lender. Before you can sell your property, you have to agree with your lender first because he will also experience some loss in this case. One of the things that you have to agree on is that, if there are any deficiencies with the loan you will still have to pay it.
When facing foreclosure, there are two things that you can do to help yourself; don’t panic and never give up. If you panic, you can’t think properly and this will prevent you from soberly facing your problem and seek foreclosure help. When panic sets in, chances are you will feel helpless and debilitated and will eventually give up and just allow the foreclosure to happen. When foreclosure happens, you wreck your credit rating and lose your property; two things which I don’t believe you want to happen to you. So don’t panic, never give up and seek foreclosure help.