subject: The Foreclosure Process and How Homeowners Can Stop It [print this page] The Foreclosure Process and How Homeowners Can Stop It
Many homeowners who are in the brink of losing their precious houses to banks and lenders find themselves desperate for foreclosure relief. Some borrowers opt to go to private loan modification companies to assist them throughout the foreclosure process but did you know that you can save your own home by yourself? It may not be a walk in the park but if you really think about it, saving your own home can spare you a great deal amount of money and prevent being victimized by loan modification fraud. Let's take a look of what you can do during each step of the foreclosure process.
Keep in mind that mortgage lenders do not want to foreclose any properties since they only get so little even after closing down a home. Furthermore, selling a Real Estate during this time of economic recession does not sound profitable either. If you missed your monthly mortgage payments but are not more than 90 days behind your mortgage, lenders will readily agree to grant you a modified loan. Make sure that when you start missing payments, you report it immediately to your lender. If your financial constraint is temporary, there is a big chance that you will be granted forbearance. Do not forget to explain your financial statues clearly and provide evidence that you will be capable to pay off your debts in a specific time. On the other hand, if your monetary problem is long term, you might want to consider filing for bankruptcy to avoid foreclosure. Bankruptcy can discharge your unsecured debts thus, leaving you debt free.
If you are 90 days or more behind your mortgage payment, you may receive a foreclosure notice. Even then, you may still negotiate with your lender to work things out and stop the foreclosure process. Be honest in your dealings because your lender has the authority to deny or grant your loan modification request. If your lender or servicer denies your application, you may ask some financial assistance from the federal government; visit your state housing agency for more information. The last resort would be filing for bankruptcy, it can stop foreclosure in its track.
If you fail to make your mortgage current and have been denied of foreclosure assistance, file for bankruptcy instead. Bankruptcy will protect you from the imminent foreclosure process and will discharge some of your debts. Remember to make bankruptcy filing your last option as it can severely damage your credit points for years.
