subject: Stopping Real Estate Foreclosures [print this page] Stopping Real Estate Foreclosures Stopping Real Estate Foreclosures
Times are tough now in New York, with the cost of living going up each year. Life doesn't get any easier especially if you have mortgage payments to settle.
The sad thing is that when you miss out on a few mortgage payments, chances are you will be in big trouble. Lenders will begin harassing you by calling or sending letters asking for the money. Some even threaten to go ahead with real estate foreclosures.
No one likes to end up with foreclosed real estate but sometimes you can't escape that option. Fortunately there might still be a few ways out of these New York state foreclosures.
First of all is to fill out the Notice of Default. That is the start of the foreclosed homes for sale countdown. When the noticed is filed, it will be displayed on a public place and at your home. You have 90 days from the filing to pay up or your home will be put up for auction. 90 days is definitely not enough when you're in a financial crisis therefore you need to strike a deal with your lender first.
You can call your lender and discuss with him about your problems. Usually they are willing to listen and may come out with plans that can help you get on track:
- They might take the unpaid balance and break it up into installment. For example, let say you owe them $2000. The lender might increase your mortgage payment by extra $200 a month until you finish paying off the balance.
- You can apply for a partial claim, which is a government loan for borrowers like you to pay the balance you owe to the lender. The criteria for this government loan can be quite strict.
- If your house equity has increased a bit and you met specific criteria, the lender might let you refinance the loan to add in the missed payment inside.
- If your loan is the adjustable loan type, the lender might choose to hold off the interest rate for now before readjusting it again after you have gotten out of your financial crisis. They might also increase or change the amortization time and this method is called note modification.
- If you are really, really lucky, the lender might write off the balance you owe him. This only happens when the lender might have more to lose if the New York state houses for sale go for a low price.
No one likes to go ahead with real estate foreclosures. You will lose your home and the lender will lose more money by selling the house. That is why you should strike a deal with the lender if you are going to miss out on a few payments. Ignoring the letters and phone calls will not solve the issue. As a rule of thumb, meet up with your lender as soon as possible the moment financial problem arises.
Keep in mind that when the Notice of Default is filled, the time constraint will be very strict and most people cannot get out of this situation without going forward with New York state houses for sale option.
