subject: Everything You Ought To Know As To How To Stop Foreclosure [print this page] Anyone can face foreclosure problem due to divorce, loss of a job or illness, there are various reasons. If you have received a notice of default, you may feel powerless. But you dont have to worry as you still have 90 to 120 days.
Refinancing is one way to stop foreclosure crisis. Refinancing is a new loan which can be acquired through existing lender or different mortgage lender. If a homeowner falls behind payments, he can find a lender easily who is willing to refinance if he has a good credit score and financial means to make monthly payments under the new loan terms. But it may be difficult for a homeowner to find a lender, if he has fallen behind mortgage payments or there is drop in her/his income. In addition, if your current mortgage is insured through FHA or VA, contact the organization to find out if any assistance programs can help in refinancing your loan before the foreclosure is finalized.
Another option is bankruptcy. Bankruptcy is one of the ways to stop foreclosure process, but only temporarily. Two main forms of bankruptcy are as follows: In chapter 7 bankruptcy, all debts are discharged and assets-including homes-may be sold to repay debts. If you notice, most of the states have homestead exemptions which allow you to stay at home till you make your mortgage payments and do not have too much equity in your home. Chapter 13, is also a better option for those who need help with their mortgage payments. In chapter 13, you dont have to liquidate all your debts, instead you have to restructure it in such a way that it becomes more affordable for you to pay. Each lender must work with you to find a way to alter what you owe to make it easier for you to repay the loan. Some debt obligations like credit cards can be reduced. Filing bankruptcy can stop foreclosure proceedings, but long enough to determine if a solution can be found.
Government help can stop foreclosure. Department of Housing and Urban Development (HUD) provides information to real estate professional and lenders about home purchase, mortgage financing, down payment assistance and foreclosure avoidance. By browsing through their site you can get information as to how can you stop foreclosure. HUD has counselors in all the states that are trained to work with homeowners who are facing foreclosure problems. The counselors will evaluate the financial situation of the homeowners and find out what they can pay for a home.
Another alternative way is to sell your home. By putting your home for sale in the market you can get good price. An offer of quick closing or an all cash transaction can net you much less than your home is worth.
By following all these methods you can stop foreclosure.
