You Can Stop Foreclosure Today With This Method

The best way to prevent foreclosure is to pay your home loan regularly

. Some unexpected situations however may prevent you from paying your obligations. This means that your lender could foreclose on your home.

Losing your job, falling ill, or getting a pay cut are situations that can adversely affect your financial standing. If you have no savings or other sources of income, you will be forced to sell some of your assets including your home. You did not plan for these situations to happen. But due to the current economic problems, you may find yourself facing extreme financial difficulties.

If you are already facing the prospect of home foreclosure, there are still ways to save your home. However, you have to take note that the solutions to your problems normally have long term impact on your finances.

When you fail to repay your mortgage loan, your lender or the bank that lent you the money could give you more time. You will be given the chance to continue paying the loan so that you will never default again. There are also instances that the bank will require you to pay the full balance of the loan. If you still cannot make the payments, the bank will move to foreclose your home. Your situation could be made worse if you do not have enough equity in the property.

A Way to Stop Foreclosure

You can file for bankruptcy to stop home foreclosure. You will need the services of a bankruptcy attorney if you are going to use this method. Your attorney can explain to you the intricacies of bankruptcy and the steps you need to do to make it less painful.

If you file for bankruptcy, the foreclosure procedures will immediately stop. This will give you more time to sort out your problems so that you can find solutions. It will also give you more time to keep your mortgage bills current. As long as you can repay your debts including your mortgage loans, bankruptcy will help you to eliminate all obligations within three to five years. There is a catch though. If you still fail to continue your mortgage loan payments, then your lender will certainly foreclose your property.

If you filed for Chapter 13 bankruptcy, you have to pay your mortgage bills to the court-appointed trustee. Repayments are required and should be regular. During the entire period, you must not have any financial difficulty for maintaining your home. Remember that the courts can not stop foreclosure if you fail to meet your obligations.

State legislators are also looking into the dubious practices of some home mortgage lenders. There are lenders who are approving loans to borrowers who are not really qualified. And if the borrower fails to repay the loan, they will immediately move for a foreclosure so they can sell the home again. This is actually a money making scheme that victimizes most homeowners.

It is not surprising to see lenders approving borrowers who are not qualified. They foreclose immediately once the borrower defaults on the loan. This scheme enables the lender to make more money by selling foreclosed homes again and again.

You Can Stop Foreclosure Today With This Method

By: Rob Blake

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