(Home loans) Avoid Foreclosure In Raleigh, NC

July 30th, 2010 admin Posted in realestate |

By George Perez Sr

Homeowners who have trouble making mortgage payments in a timely manner may be subject to seizure

and the loss of title of their home. For these often well-intentioned individuals, unforeseen circumstances

such as job insecurity or medical issues have them facing the unfathomable-home foreclosure.

Regardless of the circumstances, it should and can often be avoided, with a little effort.

If you’re unable to make your mortgage payment, it’s absolutely critical that you call your lender now, in

order to stop foreclosure. Ignoring the bills will only make matters worse, increasing the likelihood that

you’ll lose your home for sure. Borrowers who seek foreclosure help early are much more likely to work

out an answer, no matter how dire their situation. Mortgage companies want to avoid foreclosure as much

as you; they’re much more interested in the money they make off your interest, rather than the money

they’ll lose on your home foreclosure. Based on your situation, your lender may be able to provide the

foreclosure help that you need.

Problems making your mortgage payment?

Here are a few options for individuals who can’t make their mortgage payments or could have short-term

financial problems and want to avoid foreclosure:

Forbearance

A brief agreement that delays payments for a short period of time. Mortgage lenders will

only allow forbearance if you can prove you’ll eventually acquire funds. Some common examples

would be a tax refund or a bonus where you can show future earnings that can bring your

mortgage up-to-date.

Reinstatement

If you’re behind on your mortgage payments, a reinstatement can take place when you make a

lump sum payment by a specified date, bringing your account back to current status. Lenders often

combine reinstatement with forbearance.

Repayment Plan

If you’re behind on your payments, the mortgage company may give you

a fixed amount of time to catch up, by combining a portion of your past

due amounts with your regular payments, allowing you to get current.

Loan Modification

The terms of your loan can be adjusted. Changing the amortization table

or lowering your interest rate can make a big difference, reducing your

monthly payment amount to something you can afford.

Short Sale

A deal between the homeowner and lender to sell the property for less than it’s worth, with the

mortgage lender taking the loss.

Pre-foreclosure sale

A pre foreclosure sale is an effective way of stopping foreclosure, allowing a default homeowner to

satisfy his mortgage obligation by selling the property in question for an amount less than owed. You

may qualify if:

1) The loan is at least 2 months delinquent,

2) You are able to sell your house within 3 to 5 months, based on what your lender agrees

upon;

3) A new (lender obtained) appraisal meets HUD value requirements.

Deed-in-lieu of foreclosure

This last resort allows you to “give back” your property to the lender. This will leave a mark on your

credit record, but it will stop foreclosure, which is much more severe.

Taking a pro-active approach to home foreclosure avoidance can’t be stressed enough. If you lose your

home to foreclosure, the lender may come after you to recover money owed that may not have been

recuperated in the property foreclosure sale. Having a house foreclosure on your credit report is

detrimental and ranks right up there with bankruptcy. Do not forget that as negative as things may seem,

your current financial problems are probably temporary. Avoid foreclosure now so that when you get

back on your feet, you won’t be restricted by looming credit issues.

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