Before you dive head first into defaulting on your mortgage, consider all of your options carefully and get as much help as possible from the many people and institutions available to you. First of all, the bank does not want you to foreclose and put you out on the street. This is bad business for them and they should not necessarily be looked at as the enemy. They have a vested interest in keeping you in that home, so your best bet is to continue to negotiate with them at all costs.
Second, the government recognizes that many people in America are in danger of foreclosure and have set up programs which are constantly evolving to help you stop foreclosure process and keep your home. Take a moment to breathe deeply and think about how you can avoid this dangerous situation, save your home and move on to the next chapter of your life.
- Have you spoken with your lender about refinancing to stop foreclosure? Usually everything is negotiable and there might be a deal available to make paying off your mortgage each month more manageable.
- Have you considered taking out a loan to stop foreclosure? Many people use things like auto loans to pad their income just enough during a difficult stretch to help make their monthly mortgage till things get better.
- HAMP is a series of government programs that focus on helping people from different income levels avoid foreclosure. Inquire with your lender or contact the Government Housing Association to see if you might be eligible.
- Many homeowners simply wait too long thinking that their problems will take care of themselves. The best thing you can do for the life of your loan is to keep communicating with your lender and develop a good relationship.
Hesitate and you lose
Don’t wait any longer if you fear that you will have to foreclose. Even after the bank declares that they will move ahead with foreclosure there are often several months to avoid this outcome. During this time you can continue to try and negotiate new terms or payment options on your existing mortgage. When you refinance to stop foreclosure it doesn’t always mean simply changing the whole mortgage payment plan. If you have a good relationship with your lender they can be forgiving on missed payments and can give you time to make up on back payments. Sometimes they will allow you to extend the terms of the mortgage meaning you might pay more in the long run but will be able to continue owning the home and make your payments.
The Homes Affordable Modification Program encourages lenders to renegotiate new terms on existing loans in an effort to help you stop foreclosure. The programs have been expanding in scope since 2009 and have helped countless people keep their homes. Speak with your lender to see if your current situation of hardship might allow for eligibility into one of these programs.
Visit www.real-estate-yogi.com to find out more about ways to stop foreclosure. You can call them directly to speak with an agent one on one at 1-800-987-1397.