subject: Deed-In-Lieu of Foreclosure And Other Ways To Save Your Home [print this page] Today many people are facing possible foreclosure on their homes. Some of them are trying to do a foreclosure workout rather than having their home taken forcefully from them. Others have managed to do foreclosure avoidance through working with their lender. In both cases, the solution starts with the same process.
Keep a Calm Head
A person facing foreclosure needs to stay calm when dealing with the problem. It is easy for a homeowner to panic but this does not solve anything. The process for foreclosure is a long one at least 3 months to 2 years depending on the state one resides.
Make Contact
When you find yourself in this situation, contact your lender directly to see what they will consider in the area of foreclosure workout. The lender my let you set up a repayment plan on what you are behind, agree to a short sale or do a deed-in-lieu of foreclosure. In any event, you will need to prove your case to get your lender to be lenient.
Know that you do not have to sound like an expert to talk to your lender about a foreclosure avoidance plan. However, do not make demands on the lender to stop foreclosure. You need to assure the lender first that you can bring your payments current and continue making your payments as originally scheduled. Then the lender might call off the foreclosure procedure.
Along with contacting the lender on the phone, back up your communications by mail. It is also advisable that you send copies of these letters to the branch manager, a supervisor or other involved party. This will help to have your paperwork noticed.
Fill Out Paperwork
You will have to do a foreclosure workout package to completely have the lender look at your situation thoroughly. This is the only way to do foreclosure avoidance. The paperwork that you will have to fill out is as follows:
* Financial Statement - This is your money coming in and going out each month.
* Hardship Letter - This should be a detailed accounting of why you missed payments and how your situation has changed.
* Proof of Hardship Stated - This could be a lay-off notice or medical documents depending on your problem.
* Proof of Income - Paycheck stubs of other proof of what income you have coming in now.
* Bank Statements - Most lenders want the previous two months of these.
* Federal Tax Returns - The lender will want the last two years of the income tax returns for your federal taxes or a statement that you did not file any of those years.
* Analysis of Equity - What equity do you have in your home?
* Any Communication for a Sheriff or Lender's Attorney
* Workout Plan
Send all this foreclosure workout paperwork to your lender either by fax or some form of traceable delivery. It will take your lender at least 30 to 90 days to review your paperwork. Call and check periodically to see if they have reached a conclusion. If the lender will not work with you seek out other programs for help. Hope Now is one such program to help you with foreclosure avoidance. Contact this organization through their website HopeNow.com. Do not just give up until all avenues have been looked into.
Deed-In-Lieu of Foreclosure And Other Ways To Save Your Home
