subject: Stopping Foreclosure On Your Home [print this page] Stopping Foreclosure On Your Home Stopping Foreclosure On Your Home
Regardless how much financial trouble you find yourself in, your main goal should always be in somehow feeding your family and keeping a roof over them. There are times, however, when circumstances are totally beyond your control and you just can't do anything about it. This is happening to many homeowners now who have lost their jobs and are desperately attempting to make the monthly mortgage payments on their home. Unfortunately, many of these families are being foreclosed on.
When your mortgage payments fall behind, the bank is naturally concerned about you failing to make the payments on your loan. To recoup its money, the bank has the option to foreclose. What this means is that they can legally set the wheels in motion to take possession of your home and sell it. Any funds they get from reselling the home will be used to pay off the mortgage that you have taken out. Unfortunately, you will be responsible for paying all lawyer fees, closing costs, and so on that they incur in their attempts to sell the house.
When a home is sold at auction, the price that it goes for is normally miniscule compared to what it is really worth. And if the monies obtained from the sale are not enough to repay the bank for all of its cost, including the mortgage, you will be liable for the remaining amount.
Normally, a foreclosure is the worst of all available options. So, if at all possible, try to prevent it. If you are currently behind in your mortgage payments but otherwise have been relatively good about making payments over the years, the bank may be willing to do what they call a re-aging of the loan. What this means is that they will take the amount of money that you are overdue, plus your late fees, and tack that amount onto your loan, extend the length of your loan the time needed in order to pay it off, and bring you current on your mortgage payments.
The biggest benefit of this arrangement is that you don't have to worry about where you are going to get the money to bring your mortgage current. All your payments are brought up to date. It may give you enough time to get back on solid financial footing and retain ownership of your home.
Go over your situation carefully. If, after doing so you strongly believe that there is literally no way that you can continue to make payments on the home, then it is best to get out of the situation with as little financial damage to yourself as you can.
This may necessitate such measures as selling the house yourself and renting an affordable place instead. Or, if you don't mind being a landlord, maybe you can locate a renter for your home -one who is willing to pay the equivalent of your mortgage. But, whatever you do, keeping in contact with the bank is essential for the best outcome.
