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Stop Foreclosure | Best Loan Modification:
| What is Foreclosure?
Foreclosure is the legal process in which a lender or secured creditor repossesses a home or real property after the owner has failed to comply with the agreement between the lender and borrower called a “mortgage” or “deed of trust.”
The non–compliance typically occurs from late or missed payments. They typically do not begin the official foreclosure proceedings until you are three to four months past due.
The entire process can take at little as 21 days and as long as a year. This duration will depend on your State's Foreclosure laws and we encourage you to take the time and check them out. When the process is complete, the lender can sell the property.
Foreclosure Timeline:
- Tips to Avoid Foreclosure
Foreclosure happens as a result of not being able to make your mortgage payments. Financial difficulties can happen to anyone. It is necessary that you act fast in order to avoid foreclosure.
Here are some tips when dealing with pending foreclosure:
- Don't ignore the problem.
Your lender will send you letters about the status of your loan and pending foreclosure. The problem will not resolve itself, you must take action. The further behind you are on payments, the harder it will be to reinstate your loan and avoid losing your house.
- Contact your lender.
In the current market, many people are struggling to make their mortgage payments. It is a burden to lenders to repossess the thousands of homes that are pending foreclosure. They have options to help you get back on track and want you to keep your home. You must take the first step.
- Open ALL letters from your lender.
You must open and read all mail from your lender. This will give you more information on what you can do to prevent foreclosure. Remember, communication with your lender is imperative.
- Know your mortgage rights.
Review your loan documents to find out what your lender will do when you miss a mortgage payment. This way you will know what to expect and how to proceed. Foreclosure laws and timeframes are different in every state.
- Prioritize your spending and debts.
Rank your debts in order of importance. Pay those that are necessary for your family first: food, utilities, and shelter. Your credit rating can be seriously affected by not paying your debts, but if you stop making your mortgage payments you could lose your house. Look to cut out optional expenses such as cable TV, dining out, memberships, and entertainment. It is important to preserve your good credit rating for the future.
- Use your assets.
Make a list of your assets. Assets such as a second car or jewelry can be sold for cash to help reinstate your loan. Another option is taking an extra job for additional income. Even if these options don't drastically increase your available cash or income, they show your lender that you are willing to make sacrifices to keep your home.
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