5 Ways to Stop Foreclosures

Ways to Stop Foreclosures

Right now, the market is in a dreadful place and people are being forced out of their homes everyday. There are a plethora of people who are searching for a way to stop foreclosures of their homes. There's nothing like the feeling of getting that scary notice of default notifiying you that your home is about to be snatched right from underneath you. This is especially true when you have worked so hard to buy your home. In this informative article, I am going to give you 5 easy methods that you can use to stop foreclosures and keep your home. You will find our suggested methods of stopping foreclosures listed below in the order we suggest you use to keep your home.

Refinance

Refinancing your home is a feasible solution to an adjustable rate mortgage (ARM). The argument with refinancing is that it is commonly based on your credit history. So if your credit bureau has taken a recent hit, then getting your home refinanced might be a little more difficult. If your credit bureau is fine and you think that you can successfully refinance to stop your home from going into foreclosure, then this would be an ideal solution. This is a choice that only you can make.

Forbearances

The next method available to you if you're wanting to stop foreclosures is a mortgage forbearance. This is the act of the mortgage loan company letting you, the property owner, to take time away from making your monthly mortgage payment. The mortgage loan company makes it feasible for you to make your monthly mortgage payments at a later date. This is commonly due to a temporary crisis that you might be facing. Mortgage forbearances can be a great option if you've had a family emergency, temporary illness and etc. If you feel like your immediate financial financial situation is temporary and that you will be back on your feet in a short time, then write your mortgage loan company to negotiate a mortgage forbearance. This might be a better method than requesting loan modifications or trying a refinance.

Loan Modifications

Another way used to help stop foreclosures, is a loan modification. Loan modifications are basically a change in the terms of your original home mortgage loan. The best feasible outcome from requesting loan modifications is that you could end up with a lower monthly mortgage payment. This lower payment could be the result of a lower interest rate and/or a longer term on your mortgage loan. When requesting loan modifications, there are a few items you are going to want to have. You will need to put your monthly expenditures on a worksheet that the loss mitigators for your mortgage loan company can look at to truly see that there is a financial need for a loan modification. You will also need to write a hardship letter. In your hardship letter, you want to be sure that you are really detailing why you're in the current financial situation with your mortgage. There are a few other items that you will need but these two, are the best places to start. There are a lot reasons why doing loan modifications would be your best method. If you aren't able to refinance then doing loan modifications is the next best method. To stop foreclosures, it is going to take time and patience, but it can be done if you are determined enough to save your home.

Deed In Lieu of Foreclosure

This method is the act of giving your mortgage loan company the deed to your home in instead of letting your home go into foreclosure. This method to stop foreclosures is picked when the home is valued at nominally less than the amount of the mortgage loan. Mortgage loan companies might be willing to accept this method instead of foreclosure because of the money associated with doing a foreclosure. Picking this method to stop foreclosures can be effective but you should ultimately contact your mortgage loan company to find out if they would even be willing to accept this as a method to stop the foreclosure of your home.

Short Sales

Short sales are sometimes an method picked to stop foreclosures. A short sale is normally picked when you sell your home at a value that is considerably less than the amount that is owed on the mortgage loan. A short sale can be negotiated with your mortgage loan company, where they agree to accept any proceeds from the sale of the home. The items to watch out for with a short sale are the IRS and your credit bureau. These are commonly the areas that are most normally affected by doing a short sale.


From the article above, you have learned the different methods that you can stop your home from going into foreclosure. In summary, we have discussed refinances, loan modifications, deeds in lieu of foreclosure, short sales, and forbearances. All of these are legitimate ways to help you keep your home. The one you pick is based on your current financial situation and only you can decided which method to choose.


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