Preventing Foreclosure Proceedings and Understanding Your Options

Preventing Foreclosure Proceedings and Understanding Your Options
Every year more and more people are looking for help in preventing foreclosure proceedings. Many people don’t even know that this process can be prevented at all. The truth is it can be cancelled even an hour before the auction starts. If it has come to foreclosure, there are still many options available. In this article there are some of them that are the most popular nowadays.

The first one is to reinstate your loan. You just have to pay whatever sum you owe your lender for your missed payments plus whatever sum needed to refund attorney’s service payments or additional late charges. This is probably the most efficient way of preventing foreclosure.

Another way is to get forbearance. The thing is it is expensive for lenders to foreclose on your house, so it is better for them (and for you) to come up with some sort of agreement. In this case your options depend on your lender and the current situation with your debt. One of them is temporary reduction or suspension of your payments by the lender to help you to improve your financial situation. For FHA, VA and other government loans there are even more options.

The third possibility that you have is bankruptcy. This is a legal way to avoid foreclosure; however, the process can go on and lead you to 7 year long bad credit. Before making any decisions on bankruptcy you should consult your attorney first.

Selling your home can be a way out as well. The problem is that you may not manage to sell it before foreclosure clock strikes. The good thing to do is to find a real estate agent who has some experience in foreclosure cases. He should be able to find an investor that will eagerly buy your home. Sometimes it can be that easy.

Another thing you can do is give the house back to the owner. Your lender is not obligated to accept it, though. Discuss this possibility with him. Should the lender choose to refuse the deed they are required to file a Notice of non acceptance with the county recorder.

There is always a way out when in foreclosure. Don’t ignore your lender and do nothing. This is far from a good thing to do. Remember, there are always some options even for the worst situation. Just talk to your lender or other services to find out what is the one that is right for your situation.

© 2010, Jericho Mortgage — Preventing Foreclosure Proceedings and Understanding Your Options