subject: Are You Afraid Of Foreclosure Because Of The Job Crisis? [print this page] Foreclosure presents a threat to most homeowners. Meeting up with the loan payments at times becomes a headache and the consequences are even more troublesome. What should be done in the case money cannot be raised.
To halt foreclosure a brief introduction to it is necessary. When a loan company goes to a court and gets an order for taking over the residence of the defaulter, who has missed on mortgage payments, that is known as foreclosure. There are two kinds of foreclosures. One in which the mortgagor supervises the task of selling and dividing the revenue is called Foreclosure by Power sale. The other one in which the judge does the supervision for the above mentioned tasks, is known as foreclosure through Judicial Sale.
You are applying for a $200,000 mortgage. The available terms are 30 years at 6.5% interest or 15 years at 5.9% interest. The 30-year payment will be about $1,250, while the 15-year payment will be about $1,650. This is $400 more per month, however, during the 30-year mortgage you will be paying a total of over a quarter of a million dollars! You can save, over time, almost $150,000 by choosing the 15-year loan and toughing it out with the higher payment for a while.
One condition is that the homeowner declares all of his property and earnings; this is absolutely integral for qualifying for the program and also for up grading the loan terms later. The second condition that has to be fulfilled is that the reason for delaying mortgage payments must be genuine and unintentional. Lastly the owner should have covered at least 31% of the loan payments within the gross income.
No more time should be spent on thinking about solutions. There is a brief overview of the program described above. There are also other programs available that can be used besides this. For more information on this check the site for Loan Modification Solutions and stay up to date with the latest news on foreclosure.
