Effective Ways to Stop Foreclosure
Foreclosure is known to be one of the most undesirable situations a homeowner has to deal with in their lifetime. Getting a mortgage and owning a home is considered by many as The Great American Dream. Losing your home because of current and impending financial hardships can be a tough pill to swallow. However, since mortgages are a legal binding document that are to be followed by both the lender and borrower, going into foreclosure does not have to be an option.
Since the great financial crisis of 2008, more homeowners are forced into foreclosure on their homes. This legal proceeding takes away the equitable right to ownership of the borrower on their real estate property. Foreclosure translates to the inability of homeowners to work with the lender. The number of foreclosed homes in the past few years is steadily climbing. More people are losing their homes, and sadly, these people would have had the chance to save their houses from foreclosure if they considered some of the alternatives that lenders and the government are offering to the public.
There are many ways by which you can stop a foreclosure from happening to your property. You can most assuredly stop a foreclosure from happening if only you are aware of the alternatives and solutions that are available as of late.
Here is a list of the most popular ways on how you can stop foreclosure proceedings so you can keep your home for good:
Do not feel embarrassed or hesitant to call your lender if you know that you are going to make your monthly mortgage a little late. There’s no better way to stop a foreclosure than to keep an open line of communication with your lender.
Believe it or not, banks are reluctant to file a foreclosure proceeding against their clients. Even one foreclosure proceeding will cost them a lot of money and make them lose chances for profit. To protect their best interest, banks and lending companies file foreclosure so they can still salvage of what is left from the value of a home or property. However since the current home market value is low, banks would rather offer alternatives to borrowers other than a foreclosure.
When you call your lender, it is only right to provide them with the true reason for your late or missed payments. Being honest about your current financial condition will enable lenders to work with you so you don’t end up losing your home as well.
- Work out a repayment plan
Most lenders would usually wait a few weeks before they send you a notice of default. In some states, lenders will contact you the earliest or right after your payment due date so they can remind you of your current mortgage obligations.
Although collection calls that you receive a day or two days after your payment due date seem to be irritating and off putting for some, it should be noted that under the terms of agreement, borrowers are to pay for the mortgage on or before the due date. If you receive a collection call regarding your mortgage, you can provide them the reason for the late payment. If you will not be able to process the payment, what you can provide your lender is your intent to go on a forbearance plan instead.
If you are experiencing problems such as unemployment, reduced hours at work, medical bills, and other instances that may impair you to make timely mortgage payments for a long period of time, what you can do is ask to be placed on a forbearance plan. In a forbearance plan, you will be given the opportunity to spread what you currently owe the lender onto succeeding, future payments. You can even change the due date of your mortgage until you get right back to your feet.
If you want to know more about how you can avoid foreclosure proceedings, contact our company and our short sale specialists will be more than happy to work with you in solving your mortgage problems.