subject: Its Easy To Stay At Home And Still Avoid Foreclosure [print this page] The foreclosure problem started in 2007 and it has been 5 years since then. Many people have weathered the problem successfully, while many are finding it tough to ward off the foreclosure problem. Since the recession has begun, many people are finding it difficult to look for new jobs; many have become unemployed and are finding it tough to pay back the mortgage installments. In light of all this, many are facing foreclosure. But there are still ways to stay in the house and still ward off foreclosure.
Many other homeowners have seen the value of their homes falling drastically. Even then they have to pay off the huge mortgage loans that they have taken. Homeowners find that it's unfair to pay back the high mortgage loans especially since the value of their property has gradually declined. In many cases, when they are unable to pay back the amount, they are headed for foreclosure and feel helpless. Presently there are options that are available that can help the homeowners to stay in their home and avoid foreclosure.
Options available
Refinancing the loan
For those that are still current on their mortgage loan and have built equity in their homes, refinancing could be an excellent option. First and foremost they would have to approach their lender. The lender can refinance the loans under new set of terms and conditions. This can lower the amount of money that they would have to pay for the mortgage loans.
But for those that don't have a sizable equity in their homes, HARP or Home Affordable Refinance Program can be of great help. This is a program that is useful even for those that have seen the value of their homes declining. This is a federal program that is available to all troubled homeowners across the country. This is run by the Treasury and Housing and Urban Development departments and enables the struggling homeowners with a number of refinancing options. Even though the fees for refinancing under this program would need to be borne by the homeowner, it effectively helps the homeowners in getting lower interest rates and saving themselves from foreclosure.
Home loan repayment plan
In this case the homeowners should approach the bank or the lenders. This is applicable for those that are already behind on their payment schedules. Even if the homeowners have received a foreclosure notice, things can still be sorted out. Banks and lenders are especially ready to work with those that have a current income. This means that those that are behind on payments can still approach the lenders for a loan even if they have a current income. Usually in a home loan repayment plan, the lender will add all the past outstanding dues in a staggered format to the current mortgage dues. This is helpful in for the homeowner as they are able to stay in their home and avoid foreclosure. This is a great option for those that have missed 1 -2 mortgage payments and don't want their home to be foreclosed.
