How to Stop Foreclosure!
While there are several options available to help you stop foreclosure, the first thing you'll need to do is stop avoiding the process. When people fall behind on their mortgage payments, more often than not they quickly turn to avoidance. After all, foreclosure affects people on an emotional level. They get scared and their thoughts run wild. Before long the fear immobilizes them, making it nearly impossible to think clearly, let alone become proactive.
The first step in stopping the foreclosure process is to contact your lender. If you are able to pay your mortgage up-to-date, the lender may simply reinstate your loan. Chances are good you will be charged late fees on past due payments and receive negative reporting on your credit history.
If you are unable to get current on your mortgage payments, your lender might consider allowing you to enter into a Forbearance Agreement. Basically, this allows you to transfer payments owed to the end of the loan. If you are able to offer a portion of the past due amount, you will be in a better position to negotiate.
If you aren't able to offer any money upfront, do not let it stop you from asking for a Forbearance Agreement. Devise a repayment plan prior to contacting the lender. Make certain you can fulfill the financial obligation you propose. Otherwise, you'll end up right back where you started.
Lenders want to work with you, especially if you are able to show a good faith effort. But, if you fail to make timely payments, they won't be as willing to give you a second chance. Make a plan you can live with and do everything in your power to stick to it.
Another option to stopping foreclosure is to sell your home. This is a good choice for people who have equity in their property. If you don't have much equity it is more difficult to list the home with a real estate agent. The reason being, when a realtor sells your home, you have to pay them a commission fee. Typically, this is between 4 to 6 percent of the sale price. If you don't have much equity in the home, there won't be enough funds to cover the realtor's commission.
If you aren't able to find a realtor to list your home, you can attempt to sell it on your own. This can be tricky business for the novice. If you decide to go this route take time to educate yourself about the process. Conduct research online, check out real estate books at the library, or attend real estate seminars. Arm yourself with knowledge or you could end up in worse shape than you are right now.
When you place a "For Sale by Owner" sign in your front yard, chances are good you will be contacted by companies offering to buy your home. You will also receive many offers in the mail once foreclosure papers have been filed. You see, foreclosure notices are public record. People who make their living buying homes from people facing foreclosure have staff members who comb public records on a daily basis. That's how they know your personal business.
When these people contact you it's crucial that you be extremely skeptical. While there are legitimate home buying businesses that will purchase your home, many are only out to pull the wool over your eyes and leave you holding the bag.
If you don't have much equity in your home and are unable to sell it, you may be able to give the house back to the lender. This is referred to as a Deed in Lieu of Foreclosure. You voluntarily leave the home and the bank sells it through public auction. You are not responsible for any deficit if the house sells for less than you owe on the loan.
A Deed in Lieu of Foreclosure does not protect your credit, but it does allow you to walk away from the home and the mortgage payment. However, if there are any liens against the home, you are still obligated to pay them.
If you are unable to obtain a Deed in Lieu of Foreclosure, you might be forced into bankruptcy. Recent changes in bankruptcy laws have made it more difficult and expensive to file. There are several types of bankruptcy chapters and you will need to hire a bankruptcy attorney to help you determine which chapter is best for you.
Before you make any decision, it's best to consult with a real estate professional such as Simon Volkov. We can review your situation and offer suggestions best suited for your needs. While many companies claim they can stop foreclosure, the majority of them are only preying on those enduring financial hardships. They do not have your best interest at heart. We do.
There is no fee to speak with a foreclosure specialist at Simon Volkov. We have helped thousands of people stop foreclosure and end their financial nightmare. We'd like to help you get back on track and eliminate the stress of foreclosure.
We can provide you with a fresh start, help you avoid bankruptcy, and save your credit. Get started today by filling out Real Estate Notes and Land Contracts Form. This form is secure and all information will be held in the strictest confidence.
Upon receipt of your information one of our foreclosure consultants will contact you to further discuss your needs. We look forward to working with you to stop foreclosure or find a suitable solution to keep your credit intact.
Published on September 03, 2007 at 09:45 PM