Simple Tips On Avoiding Foreclosure
Few things are as devastating as losing your home. Sadly, it's not always inevitable. In many cases the foreclosure could've been avoided with some outside help.
Foreclosure can happen to anybody. I have personally seen dozens of people with perfect credit end up facing foreclosure. The most common causes are divorce, job layoffs, or a devastating illness. Sometimes it's a combination of factors that quickly snowball.
Despite what many people think, most lending institutions are not anxious to foreclose. In fact, in most cases they end up losing more money than they gain. It's a last-ditch effort to recover their money and minimize their losses, and it's an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources of help available if you find yourself in this position.
Contact your lender immediately. If you are proactive and explain your situation before you fall behind most lenders will work with you to find a solution. If you wait until you're several months behind on your payments this becomes less of an option.
Different mortgage program. Talk to a loan officer about the possibility of refinancing your mortgage to a more affordable program.
Special Forbearance. Many borrowers can qualify for a new payment structure if they've had an increase in their cost-of-living, such as unexpected medical expense, or a decrease in wages. This payment structure will allow the owner to repay the lender in a given time frame.
Housing Counseling Agency. The US Department of Housing and Urban Development maintains a list of HUD-approved counseling agencies. Call (800)569-4287 to find an agency near you.
FHA-Insurance fund. FHA borrowers may qualify to have a HUD make a one-time payment to bring your mortgage current. Go to www.hud.gov/foreclosure for more information on the requirements to qualify.
-Bill Burniece
Few things are as devastating as losing your home. Sadly, it's not always inevitable. In many cases the foreclosure could've been avoided with some outside help.
Foreclosure can happen to anybody. I have personally seen dozens of people with perfect credit end up facing foreclosure. The most common causes are divorce, job layoffs, or a devastating illness. Sometimes it's a combination of factors that quickly snowball.
Despite what many people think, most lending institutions are not anxious to foreclose. In fact, in most cases they end up losing more money than they gain. It's a last-ditch effort to recover their money and minimize their losses, and it's an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources of help available if you find yourself in this position.
Contact your lender immediately. If you are proactive and explain your situation before you fall behind most lenders will work with you to find a solution. If you wait until you're several months behind on your payments this becomes less of an option.
Different mortgage program. Talk to a loan officer about the possibility of refinancing your mortgage to a more affordable program.
Special Forbearance. Many borrowers can qualify for a new payment structure if they've had an increase in their cost-of-living, such as unexpected medical expense, or a decrease in wages. This payment structure will allow the owner to repay the lender in a given time frame.
Housing Counseling Agency. The US Department of Housing and Urban Development maintains a list of HUD-approved counseling agencies. Call (800)569-4287 to find an agency near you.
FHA-Insurance fund. FHA borrowers may qualify to have a HUD make a one-time payment to bring your mortgage current. Go to www.hud.gov/foreclosure for more information on the requirements to qualify.
-Bill Burniece
posted by Bill | 12:59 PM
|
0 comments
