HOW TO STOP A FORECLOSURE
Foreclosure is one of the most
terrifying prospects a person can face. A personal tragedy such as
the loss of a spouse or an unforeseen illness can leave you not only
homeless, but relieved of the equity in your home.
will teach you how to stop foreclosure. Some steps apply before the
foreclosure process has even begun while others apply afterward. The
most important thing to know is that the earlier you act- the
Before you go into Foreclosure
1. Contact your
lender the moment you know you cannot make the next payment on time.
Lenders would rather work with you to get you through a rough patch
than invest the time and money required to foreclose.
Answer every letter and phone call from your mortgage company.
Ignoring your lender is a sure way to prevent them from working with
3. Do not let exasperation or hopelessness convince you
to give up.
If you want to stop foreclosure, you are going to have
to make an effort.
4. Consider forbearance.
lender may permit you to delay your payments for a specified period
of time. This may require evidence that you will be able to catch up
within a certain time frame.
After you have Missed a Payment
1. You can be reinstated.
Let your lender know when you will have
the money to make up your missed payment and ask how to go about
2. Repayment plans.
If you cannot provide
your mortgage company with a lump sum, work with them to adjust your
payments to include a reasonable increase until your missed payments
have been made up.
When your Issues are not Temporary
Modify your mortgage. If you’re financial situation has changed for
the long haul (such as an illness, layoff or death), you may be able
to adjust the terms of your mortgage. Your lender may be willing to
reduce the monthly payment in return for a higher rate and/or longer
repayment schedule. In some cases, the mortgage company may even be
willing to work the missed payments into your current loan, allowing
them to be financed over the remaining life of the mortgage.
Sell your Home
When all other means fail, selling your home may
be your best bet. You will need to work with your lender to prevent
stop foreclosure proceedings while you put your home on the market
and try to recover your equity.