How To Stop A Foreclosure
Foreclosure is the legal process that occurs when you fail to make payments as agreed in your loan documents and one or more of your houses lien holders decides to take legal action to repossess the property.
Mortgage foreclosure may take place if a homeowner, who has taken out a loan, defaults on the mortgage payments. Through the process of mortgage foreclosure, the lender can take possession of the defaulted home. In case the value of the home is less than the mortgaged amount, the borrower may face a ‘deficiency judgment’ requiring them to pay the balance. Mortgage foreclosure has a negative impact on the homeowner’s credit history and credit score.
Just because you are one of the many homeowners who face foreclosure, doesn’t necessarily mean that you have to give up the property. There are many options for those who have a house in the pre-foreclosure stage and want to prevent it from being auctioned off. These methods can include modifying the loan, getting a refinance, or simply selling the house.
How to avoid foreclosure
One of the most important reasons to prevent your house from going into foreclosure is to keep your credit intact. As soon as you realize you may not be able to make a mortgage payment in time, get in touch with your lender and inform them of your situation. Get all of your finances in order as soon as possible, prepare your bank statements, tax returns, and do not let your house foreclose. Consider selling your home if you want to stop the foreclosure process in its tracks.
To stop foreclosures, there are several other things that a homeowner can do. Homeowners can try and apply for Special Forbearance to avoid foreclosure. This may lead to a revision of the repayment schedule and in some cases the payment may either be revised or suspended. Your lender is not in the business of taking homes through mortgage foreclosure; they make more money by lending your mortgage payment to other homeowners.
If you are familiar with the foreclosure listings in your area, it will make things easier for you when you discuss with your lenders. Foreclosure listings are the lists of foreclosure homes, with comprehensive information and details geared towards potential buyers interested in buying a foreclosure property.
Foreclosure listings provide detailed description on various aspects such as the property details, foreclosure information, neighborhood information, sales history, tax information and also the contact information. To find out more on foreclosure listings, the internet is a good place to learn more on the subject.