The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.
Do not ignore letters from your lender because those responses will make the situation worse, not better. Depending on your particular situation and hardship circumstances, here are some options your lender might propose to you:
Time To Catch Up Your Payments:
Lenders might agree on forbearance. The lender will wait before taking legal action against you and let you work out a repayment plan that is affordable for you.
Forgiving A Payment:
Debt forgiveness is rare. It involves agreeing that you will be current after missing a payment and the lender waiving your obligation.
Spread Out The Missed Payments Over A Longer Term:
A repayment plan allows you to pay your missed payment over a few months to a year. For example, if your payment is $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up.
Changing The Terms Of Your Loan:
If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable.
Add The Back Payments To Your Loan Balance:
If you have sufficient equity and meet the lender’s lending guidelines you might be able to refinance. Here the lender might increase your loan balance to include the back payments and re-amortize the loan.
Make A Separate Loan To You:
During a partial claim borrowers who meet specific criteria can apply for another loan, which will pay back the missed payments.
Foreclosure can happen to anybody in any financial income bracket. Also, it is not something that you should hide from because it never goes away.
There are many ways to avoid foreclosure but you must act on time. Once you miss your first payment it gets hard to catch up and becomes overwhelming
Foreclosure is when a Lending institution repossesses your home because of unpaid mortgage payments. The mortgage company does not typically begin the official foreclosure proceedings until you are 3-4 months past due. The duration of proceedings depends on your State’s Foreclosure laws.
The Obama Administration has put a number of programs in place to help homeowners who are at risk of foreclosure and struggling to make their monthly mortgage payments. Homeowners are encouraged to contact their lenders and loan servicers directly to inquire about foreclosure prevention options available to them.
Programs to Help Homeowners Avoid Foreclosure Include:
.The Making Home Affordable © (MHA) Program: helps homeowners avoid foreclosure, helps stabilize the country’s housing market, and also helps improve the nation’s economy. Homeowners have the opportunity to lower their monthly mortgage payments and obtain a loan at a lower rate. There are also choices available for unemployed homeowners and homeowners who owe more than their homes are worth.
.Home Affordable Modification Program (HAMP): lowers a homeowner’s monthly mortgage payment to 31 percent of their verified monthly gross (pre-tax) income. The HAMP modification usually results in a 40 percent drop in their monthly mortgage payment.
.Principal Reduction Alternative (PRA): was designed to help homeowners whose homes are worth less than they owe, by encouraging servicers and investors to reduce the amount you owe on your home.
.Second Lien Modification Program (2MP): this program was designed for homeowners whose first mortgage was modified under HAMP SM and they have a second mortgage on the same property. The homeowner might be eligible for a modification or principal reduction on their second mortgage under 2MP.
.Home Affordable Refinance Program (HARP): is designed to help homeowners who are current on their mortgage but have been able to refinance because the value of their home has declined.
.Home Affordable Unemployment Program (UP): designed for individuals who are unemployed and are having a tough time making their mortgage payments. The program provides a temporary reduction or suspension on your mortgage payments for at least twelve months while you seek re-employment.
.FHA Forbearance for Unemployed Homeowners: Federal Housing Administration (FHA) requirements now require servicers to prolong the forbearance period for unemployed homeowners to 12 months. It also requires servicers to extend the forbearance period for FHA borrowers who qualify for the program from four months to twelve months also removing any upfront hurdles to make it easier for the unemployed borrowers to qualify.
.Home Affordable Foreclosure Alternatives (HAFA): If your mortgage payment is unaffordable and you wish to transition into more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA SM.
Are you planning to go for a mortgage deal for your commercial property? Are you planning to go ahead with the mortgage deal for your residential property? Which ever way you take, it is always important that you hire an experienced mortgage lawyer or attorney to fix your deal, or else it would turn out to be a complete loss for you. Simply put, a trained, qualified and experienced mortgage lawyer can bring real difference in the mortgage deals, and even the most complex mortgage deal can happen in just few hours.
Mortgaging a deal isn’t a child’s play and you have to come across many mortgage federal laws of which only a qualified and experienced mortgage lawyer is aware. You cannot expect a novice to materialize the mortgage deals for you. It is always you who have to be serious in choosing an efficient mortgage lawyer for your property deal.
Here are few important points that will help you to ascertain what a mortgage lawyer can really do for you:
- 1. A mortgage lawyer can help you in fixing your mortgage deal if you have poor credit history. He can adjust your mortgage deal on the basis after considering your financial position.
- 2. If you find yourself scrambled in the adjustable rate mortgage, a mortgage lawyer can help you to mortgage the real estate deal for you.
- 3. If you are facing foreclosure, because you were not able to pay the amount pending on your home or office, a mortgage lawyer will come to your rescue and help you give the best option out.
With that much informed, it is very important that you select a professional and experienced mortgage lawyer who can understand your financial situation and close down the real estate property deal for you. If you are hiring an untrained or inexperienced, mortgage lawyer who is just new to the mortgage industry, then you know very well what repercussions you’d ultimately find. There are experienced lawyers available on the internet. You can search for professional Real Estate Lawyer Haddonfield, New Jersey and many other places.
Here are few points that you need to take into consideration when choosing a mortgage lawyer:
- 1. Mortgage lawyer should be experienced. A mortgage lawyer who is we experienced and can handle your complexities in your property will be the right option to go with. Take time when selecting the mortgage lawyer.
- 2. Mortgage lawyer should be affordable. An expensive mortgage lawyer will ask for high fee and this would eventually make you lose all your hard earned money.
- 3. Mortgage lawyer should always be available for advice on telephone. Realizing the fact that it is not possible every time to meet physically with the mortgage lawyer, availability of the lawyer over the phone can help you to seek his advice.