subject: Foreclosure Assistance - Help When You Need It [print this page] Unbeknownst to many in a financial jam, failure to pay the scheduled mortgage payment doesn't necessarily mean you have to lose your house. While you may not be able to live up to the original terms of the loan, many banks are willing to work with you, provided you are ready to communicate. While the bank certainly won't sit around while you give them nothing, they stand to lose as much as you do by forging ahead with proceedings. Lenders don't make money by repossessing houses. If you can give them an alternative that will allow them to continue to make a profit, you should be able to keep your house. A foreclosure assistance service can help you do just that. Here are some ways you can avoid what some think is inevitable.
Temporary Readjustment
A reasonable lender will understand if you're going through a rough patch that has a foreseeable end. For instance, you've been out of work but now are back at the job and should have money coming in soon. In these instances, banks stand a lot more to lose by holding firm to the original terms of the deal than by working with the homeowner. They may allow you to take a break from your mortgage for a few months, tacking those payments on to the end of the loan. Foreclosure assistance programs will often push for this solution if it is available.
Repayment
Perhaps you've already missed some payments and you feel as though you're now just waiting for the inevitable, even though you are back in a position where you can pay each month. The problem is making those back payments. They loom ever larger and your budget isn't getting any bigger. This is where you need to talk to your lender about a repayment plan. A foreclosure assistance company can help you with the communication if you need it. If they agree to terms, you can repay the missed payments in an installment and avoid proceedings.
Modification
Sometimes, a short-term solution isn't going to change anything. Perhaps you are in a situation where making the monthly payment is not going to happen, nor will it happen in the foreseeable future. There is still hope. Some lenders are willing to work with the homeowner on a mortgage modification program, should it seem like a good risk to take. More often than not, this means extending the life of the loan in exchange for smaller payments, but it may also mean reducing your interest rates.
