Unfortunately, everyone runs into a time of life when money
is tight and juggling finances is a serious challenge.
For individuals owning a home, they could be in a position
of having the home foreclosed for lack of payment. If you
have found yourself in a compromising position but
desperately want to do what you can to save your home, the
good news is that avoiding a foreclosure is possible if you
know how.
A foreclosure means that the mortgage company or lending
institution for your home can take it back to resell if you
fall behind on payments. When this occurs, you have several
options. First, you can go through a process to keep your
home. Second, you can sell the home on your own and then
pay off the loan plus any fees. Third, you can allow the
home to go through foreclosure where they sell the home and
you are responsible for any difference between the price
the house sold for and the payoff balance.
If you fall behind on payments and begin to receive letters
from your mortgage company, most importantly, NEVER ignore
them. Instead, call the number provided on the letter and
talk to a representative, explaining the reason why you
fell behind. Just as with you, the mortgage company wants
you to keep your home. After all, foreclosure is a hassle
for them, expensive for them, and not something they want
to do. Therefore, they will usually work closely with you
to provide all possible options.
A Special Forbearance involves the mortgage company
providing you with a temporary reduction or even a
suspension of your monthly mortgage payments. If you have
recently lost your job, had a reduction in income, or your
living expenses have increased unrepentantly, this option
may be ideal.
Another option is a Mortgage Modification. With this
option, your mortgage is refinanced or the term of your
loan extended. The way this program is designed, you have
an opportunity to become caught up on payments. A Partial
Claim is another possibility whereby your mortgage company
would help you secure an interest free loan from HUD, which
helps you bring your mortgage to a current payment status.
Remember, if you fall behind, rather than worry about
foreclosure, talk to your mortgage company to see what
programs you would qualify for so you can stay in your
home. Never ignore the problem, because you likely have
several viable options to fix your foreclosure problem.
|
