FORECLOSURES
Nationwide, the delinquency rate for mortgages on one to four-unit residential properties rose during the last several periods according to the Mortgage Bankers Association of America. The increase in delinquencies could signal more foreclosures to come on properties held by over-extended homeowners.
What is the cause of all these delinquencies? There could be several reasons: Loss of a job, health issues, divorce, business failure, income reduction & other financial setbacks.
The loss of one's home due to temporary financial difficulties is not a pleasant experience. It can be quite stressful and can create a destabilizing effect on your entire family. Unfortunately, sometimes it happens to the best of us.
When you miss your mortgage payments, foreclosure may occur. This is the legal means that your mortgage company can use to repossess (take over) your home. Legally, lenders can begin foreclosure when you miss your first payment, but most do not begin actual proceedings until after several months of consecutively missed payments.
When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, your lender could seek a deficiency judgment. If that happens, you not only lose your home, you also would owe your lender an additional debt. Foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future, you should avoid it if possible.
Avoiding Foreclosures
Assuming you want to keep your home, here are some basic dos and don'ts to help you avoid foreclosure.
When you are faced with foreclosure, contact your lender as soon as you know your payments will be late. If you receive notices, DO NOT IGNORE THE LETTERS FROM YOUR MORTGAGE COMPANY, sticking your head in the sand is not going to make the problem disappear. Your lender is not in the real estate business of seizing and selling homes. It would rather you pay the note.
Communicate with your lender in writing to establish a paper trail of evidence that you are trying to resolve the problem. Communicate with someone in authority, not the bill collector who is only after the back payments.
Your first strategy should be to negotiate some workout to pay the arrears and make future monthly payments. Special programs are available for those with FHA, federal VA loans and others covered by state veterans programs. Ask your lender what is available for you.
Consider refinancing the loan. That would both bring your loan current and pay off the lender before it forecloses.
If you are in the military, you have special rights under the Soldiers and Sailors Civil Relief Act to stop the foreclosure and you may be eligible for a reduction in the interest rate.
Procedural errors in the lender's foreclosure or lender errors when you acquired the loan could permit you to file a lawsuit to enjoin or stop the procedure.
If all else fails, bankruptcy is an option that can stop foreclosure, at least temporarily, and give you some leverage to resolve the foreclosure.
Selling the property is your other end-game option. Either selling the property out right as quickly as possible or deeding it to the lender in exchange for ending the foreclosure.
Obviously, there are many options for you to consider. There are certainly avenues available that may allow you to stay in your home and maintain ownership. There are also ways of disposing of the house and avoiding a damaging sheriff's foreclosure sale. Declaring bankruptcy is usually NOT the best thing to do, nor is it necessary in most cases.
We have programs to help stop foreclosure regardless of your situation.
With the right help, virtually any foreclosure situation can be successfully resolved. We have helped many homeowners stop the foreclosure process and we can help you too. Having someone available who can make you aware of all of your options and advise you regarding the best course of action is always the best possible way to approach these challenges.
When facing foreclosure, time is your ENEMY. You MUST act fast to protect your rights and preserve your credit.
If you have a problem now or are concerned that such a problem is looming, don't hesitate one more minute. Just call or email us, remember ALL information is held confidentially and consultations are completely FREE. We will be in touch immediately to help you get started on the road to recovery.
STOP Your Foreclosure Now!
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