There's A Lot That You Can Do To Avoid Foreclosure With home ownership in America at an all time high and housing values having risen substantially over the majority of this decade, many people have a lot invested in their real estate. Unfortunately, as is becoming all too apparent with the problems in the housing market, the prosperity that many have experienced over the past few years has come at a cost. Many people are finding that because of the terms of their mortgages or unfortunate life circumstances, they can't make their payments are in danger of foreclosure.
Fortunately though, even with the the problems that are now confronting many homeowners, foreclosure isn't always necessary. That's because there are a number of different tactics that homeowners can take to either delay foreclosure or to eliminate the danger of this heart breaking event altogether.
While there are a variety of different measures that a homeowner can initiate to avoid foreclosure, the approach to the situation can make all of the difference. Basically, the most important thing is to be proactive rather than trying to pretend that the situation doesn't exist. In other words, when you realize that you won't be able to make a payment, the first thing that you should do is contact the lender institution and inform it that you're having trouble making payments. That's also the first step when it comes to preventing a foreclosure. Assuming that you end up missing some payments without contacting the lender, under no circumstances should you ignore phone calls or late payment notices from the lender.
Once you contact the lender, there are a number of steps that can be taken to deal with your financial situation. Which of these tactics you end up using will depend on your exact situation. For example if you've lost your job and expect to get a new one in a certain amount of time, you might be able to take advantage of forebearance and or reinstatement which both involve delaying any payment at all until you have a new source of income and then bringing the payments up to date by a set time at some point in the future.
Other tactics are more appropriate for people who will have longer term problems with making their payments. Perhaps you were forced to take a pay cut, got laid off of a job and had to take a lower paying one to replace it, or have a balloon type mortgage that's about to become a lot more expensive to pay on a month to month basis. The most talked about option for this situation is to refinance your mortgage. With a refinance, you're essentially able to take out a new mortgage and then use it to pay off the old one. Refinancing is an especially good option because it's often possible to get the first lender to accept an upfront payment that's less than the principal that you owe. In this case, you'll have less debt after refinancing than you did before. That's also why it's a good idea to take the initiative solve the problem before you get into trouble- the better your credit is and the more responsible you appear on paper, the more likely you'll be to get a good rate on your new mortgage!
In addition to refinancing your mortgage it may also be possible to get your current lender to modify the terms of the mortgage to make it easier for you to afford. Also, while it might be a much less satisfying solution, you might want to consider selling your house and then buying another one that's easier to afford.
While foreclosure can sometimes be an unpleasant fact of life for homeowners, there is plenty of help available to prevent this potentially devastating experience. With that help, foreclosure should be the option of last resort for most families.
About the author:
Martin Schwartz works as a financial consultant for financial service providers and writes articles about how to Stop Home Foreclosure. If you are trying to Avoid Foreclosure you will find all the information you need and more in his articles.
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Published Feb 7, 2012 01:01AM MDT
In my State of the Union address, I laid out a blueprint for an economy that?s built to last ? an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values of fairness and responsibility. Over the past decade we strayed from those values and we saw what happened. Millions of families who did the right thing were hurt when the massive housing bubble burst. Folks who shopped for a home they could afford, secured a mortgage and made the... ... Pinole good Samaritan faces foreclosure - San Jose Mercury News: News Former East Bay Municipal Utility District plumber severely injured while stopping to help stricken man on freeway; faces mounting debts. DocX Faces Foreclosure Fraud Charges in Missouri - International Herald Tribune: Business The charges against DocX, which provided home foreclosure services to lenders across the nation, are one of the few criminal actions to follow reports of widespread improprieties against homeowners. Key states move closer to foreclosure-abuse deal - Salt Lake Tribune By DEREK KRAVITZ The Associated Press
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Washington ? California and New York, the key holdouts in a long-awaited settlement over foreclosure abuses, moved closer Monday to backing a deal with most other states that would force the five largest mortgage lenders to reduce loans for about 1 million households. But those states, along with a handful of others, had not joined the settlement by a Monday deadline set by the nation?s state attorneys general. And a deal might not be finalized for days. California still has ?significant sticki... ... Mortgage relief: Partial plan better than none - Yahoo! News Search Results for mortgage The architects of the joint state-federal mortgage releief plan believe it would be better for homeowners to get a partial deal than nothing at all, according to sources. Occupy Bernal, Petaluma zero in on foreclosures - SFGate: Business & Technology Occupy Bernal, Petaluma zero in on foreclosures OccupyMN Fences Off A Foreclosure-Free Zone In S. Mpls - WCCO: National <img width="150" height="112" src="http://cbsminnesota.files.wordpress.com/2012/02/occupymn.jpg?w=150" class="attachment-thumbnail wp-post-image" alt="(credit: CBS)" title="Occupy Minnesota S. Mpls Home" />The group Occupy Minnesota stepped up their efforts Saturday to prevent foreclosures. <img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=minnesota.cbslocal.com&blog=15909630&post=211019&subd=cbsminnesota&ref=&feed=1" width="1" height="1" /> GOP candidates shy away from Nevada housing crisis - SFGate: Top Stories GOP candidates shy away from Nevada housing crisis Thousands of condo owners stuck in condos they can?t sell - Salt Lake Tribune By LESLEY MITCHELL The Salt Lake Tribune
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Pete Farley?s condominium is tidy, updated, clean and in a good neighborhood. And with a listing price of just under $175,000, it is affordable to most buyers. All of those things should make it an easy sell in today?s real estate market. Instead, the condo unit is largely unsellable. The problem is that Farley?s condo community lacks certification from the U.S. Federal Housing Administration. And without that seal of approval, buyers with FHA-insured loans ? and some with other types of loans ... ... Obama seeks to broaden reach of housing assistance - Salt Lake Tribune By JIM KUHNHENN and BEN FELLER The Associated Press
Published Feb 1, 2012 05:59PM MDT
Falls Church, Va. ? Conceding his earlier housing programs have fallen short, President Barack Obama on Wednesday proposed a vast expansion of government assistance to homeowners, aiming to make lower lending rates a possibility for millions of borrowers who have not been able to get out from under burdensome mortgages. The president?s proposal is laden with election-year politics and faces a difficult path in Congress. Obama wants to pay for the estimated $5 billion to $10 billion cost with a ... ... If you're about to lose your home, just occupy it - Chicago Tribune: Opinion If you're about to lose your home, just occupy it Obama details broader housing refinancing plan - Star Tribune: Latest President Barack Obama called on Congress Wednesday to make it easier for millions of additional homeowners to refinance their mortgages at lower interest rates even if they owe more than their homes are worth. He conceded that his administration's housing plans so far have not lived up to their promise. Obama details broader housing refinancing plan - Minnesota Public Radio: Business The president called on Congress today to make it easier for millions of additional homeowners to refinance their mortgages at lower interest rates.<img src="http://feeds.feedburner.com/~r/MPR_Business/~4/s3W5aagPLgs" height="1" width="1"/> Ex-Credit Suisse trader pleads guilty in NY - Salt Lake Tribune By LARRY NEUMEISTER The Associated Press
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Lawyers for the foreclosure arm of Bank of America argued Tuesday that when it sells a home in Utah it is governed by Texas law and not Utah statutes. That assertion came in arguments in U.S. District Court in Salt Lake City where ReconTrust and BofA are being sued over what Utah attorneys contend were years of illegal foreclosures in Utah. Under state law, only a practicing attorney or a title company with offices in Utah can file a notice of default with county recorders that starts the forecl... ... America is becoming a nation of renters - MSNBC There was fresh data from the government Tuesday showing that the American dream of owning a home is fading fast. ... How homeowner fought foreclosure - Chicago Tribune: Real Estate How homeowner fought foreclosure Mortgage modification program expanded to investors, others - Chicago Tribune: Business Mortgage modification program expanded to investors, others Brokedown Palace - Newsweek Top Stories David Siegel wanted a Versailles. Now he wants revenge.
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