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.