How To Stop Foreclosure Fast
Has your banker been hounding you over house payments that are in arrears
? You may only be 2 or 3 months behind, but your mortgage lender has already made threats of foreclosure. You are by no means alone in this predicament. In today's recessionary economy, many homeowners are in the same boat.
You may have gotten into this situation because of an unforeseen financial hardship or the loss of your employment. Whatever the reason, it is possible to stop foreclosure fast, if you take the appropriate action.
This involves responding in a timely fashion once you are told by your lender that your payments are late. The sooner that you take steps to work with the lender, the more likely it is that they will work with you.
There are several ways to stop foreclosure fast. In the case of a short period of unemployment, or some other misfortune of a temporary nature, the best solution might be a forbearance agreement. This is a short-term plan whereby your banker agrees to accept part of the back payments now, and then the rest over the next few months. This type of arrangement does not work well for most borrowers, because the make-up payments are in addition to their regular monthly payments. You may have to make a few sacrifices elsewhere in your budget, but if you have a steady income this is probably the quickest way to clear up the problem and avoid foreclosure.
Other possible ways to stop foreclosure fast include getting a short refinance loan, signing a deed in lieu of foreclosure, or negotiating a modification of mortgage, or loan modification agreement.
Most borrowers prefer a loan modification agreement over the other options we have discussed, simply because it results in decreased mortgage payments. A permanent change is made to the terms of your mortgage loan. The banker either agrees to a lower rate of interest on the loan, or an extension of the total repayment period.
Thousands of homeowners all across the country have gotten a loan modification agreement. Thankfully, these homeowners have been given the opportunity to stay in their homes. Unfortunately, there is now a huge backlog of delinquent home loans in the hands of these lenders. The result is that they are unable to respond to your calls and letters in a reasonable time frame.
It is easy to understand the frustration of many homeowners over their failed efforts to work out an agreement with their mortgage lenders. They often find that they are bounced around from one person to another, speaking to someone different each time they call. Most of the employees you talk to are a low-level clerk who has been taught to read from a script and give you boiler-plate answers. They might tell you to send a payment, and lead you to believe that everything is OK, but they don't actually have the authority to make an agreement with you. You may find that, after sending in the payment you were told to, the lender goes ahead with foreclosure proceedings anyway.
Even if you do manage to reach someone in authority, and you succeed in negotiating a loan modification agreement, it will be a rather long process. This will involve submitting all the required documentation, reviewing, notarizing and executing new loan documents, and then overseeing the transaction through escrow until closing.
With all of these factors in mind, you might want to look into enlisting the help of a loan modification expert. These professionals have experience in dealing with most of the mortgage lenders. They know who to contact with the authority to negotiate an agreement. They have the expertise to go to bat for you in negotiations with your banker, possibly saving you thousands of dollars over the life of the loan. Having all the details attended to can lift a huge burden off your shoulders, and may provide the most efficient way for you to stop foreclosure fast.
by: James Sopher
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