I recently retired. But I used to work for a mortgage lending company. I helped my fair share of people buy and own their first homes. I helped make many families realize a dream. However, because of certain unenviable circumstances in their lives several of my client’s dreams became foreclosure nightmares.
During the beginning of our most recent economic depression, when a home owner came to me to discuss alternatives to foreclosure, the options were limited. I didn't want to face a foreclosure because it meant my company was going to lose a lot of money. We would have to try and resell the home at a substantially decreased value. Plus we knew we were adding to the pile of former homeowners walking around with bad credit. That’s not good for business. However, it seemed the only option was bankruptcy if another loan was unavailable.
Towards the end of my career our options as lender and borrower began to open up. I was able to help far more families save ownership of their homes and stop foreclosure. I left the business feeling much better about the future of the housing market. Here are some things every homeowner should know.
- Government programs such as HAMP stop home foreclosures regularly now. Research your financial situation and see if you might be eligible.
- It is no longer necessary to have good credit to secure a loan for enough money to get you through a tough period. Many companies now offer loans with limited, or no credit check necessary.
- Bankruptcy is always a last resort and does Stop Home Foreclosures from happening sometimes. It is a final option usually.
Government Aid and HAMP
In 2008 my lending company and others of its nature were losing money. We were also losing clients because there were less and less people to offer our mortgages too. HAMP was created the following year, and since this time we have renegotiated certain mortgages that were in danger of falling to foreclosure. HAMP has grown in scope to include varying degrees of financial hardship. The main thing to keep in mind is that it too is typically a last resort. Eligibility is only given to homeowners who have fallen into unfortunate financial situations.
Auto Refinancing
Many people use a second mortgage, or another loan to help pay off a mortgage. However, what about the homeowners who have low credit scores and can’t secure another loan? Auto refinance loans are a great way to stop foreclosure if all you need is a little extra money to keep you afloat. If you feel your situation is temporary and money will be there in the long run, seek an auto loan. You need not worry about bad credit scores.
Bankruptcy
Bankruptcy, particularly chapter 7 and chapter 13 have long been associated with stopping foreclosures. They are typically a last resort and can remove you from the immediate threat of debts. However, there are immense risks associated, and great care should always be taken before choosing bankruptcy. Hire a bankruptcy lawyer to help.
A website I often visit for advice regarding problems with real estate debt is Real-Estate-Yogi.com. They can get you up to speed on ways to stop foreclosure and loans to help pay off existing mortgages. Call 1-800-987-1397 for a free consultation.
