If you currently own a home and have a mortgage then you should feel proud. This is a great accomplishment. However are you aware of how quickly life can turn upside and cause you to lose your home? Perhaps you made it through the most recent housing crisis, or took advantage of the great deals that were a result and now own a home for the first time.
However, those that are facing foreclosure think back to when they first bought the home and realize that losing it was the furthest thing from their mind. They spent little time planning ahead in order to stop home foreclosure. Not only do you lose your home, but the hit to your credit can be catastrophic and crush your chances of owning a home in the future. Why do people end up dealing with the threat of foreclosure?
- Death in the family, or a sudden illness or expensive medical emergency.
- Divorce, job loss or unexpected unemployment, or the loss of a second income.
- Excessive debt obligations from things like credit cards or loans.
- The inability to pay an adjustable rate interest rate that has gone up.
Plenty Of Risks
There are many other risks which lead to foreclosure that you need to be aware of during your years of homeownership. It is likely in your lifetime that you will have to pay medical fees of some kind. This is just a matter of playing the percentages. With the job market always in flux it is very possible that you may lose your job or suffer through an unexpected reduced salary. If you decided to go with an adjustable rate mortgage than at some point the interest rates from your lender will probably go up. Will you be able to afford these new rates if you can’t negotiate to a fixed rate? With home ownership it is sound advice to expect the unexpected just to be safe. Losing your home to foreclosure can be a disaster, so you must learn how to stop foreclosure on your home if you ever face this crisis.
Don’t Make Your Lending Company The Enemy
One of the best ways to avoid foreclosure is to prevent your lender from filing a Notice of Default. Lenders are not the enemy and do not want to foreclose, but they have to protect their interests if necessary. If you speak with them at the first sign of trouble they will help advise you on how to stop home foreclosure, and whether there might be room to negotiate. Government programs under the Homes Affordable Modification Program encourage lenders to renegotiate new terms on existing mortgages, so it might be possible to create an entirely new mortgage that is more affordable for you, and prevents lending companies from losing money on the overall value of the home. Lending companies may agree to wait before taking any legal action against you. Especially if you have honored your contract perfectly thus far, mortgage lenders sometimes cooperate with your own repayment plan. This is called forbearance.
If you are facing foreclosure prompt immediate attention is needed to address the problem. Visit www.real-estate-yogi.com to get the best help to teach you how to stop losing your house to foreclosure. Call them directly at 1-800-987-1397 for a consultation.