The purpose behind this report is to help you decide which option is best for you when it comes to preventing the foreclosure process. The way to do this is through information. You cannot have too much information when it comes to the foreclosure process. The more you know, the better informed you are of your choices. You do not have to walk into the foreclosure process blindfolded – there are preventative measures that you can take.
It is important that you know the options that are available to you. The options that you choose will depend on whether you want to keep your home or sell your home. This report can give you some of the information regarding these choices. Before making a choice, however, you should talk with a loss mitigation specialist who is familiar with the foreclosure process and who can analyze your case. After you read over this report, you should call or contact 1st Foreclosure Prevention so that you can get a free foreclosure evaluation that can weigh your options against your unique set of circumstances. All foreclosures are different and all come with a unique set of circumstances. The main reason why people go into foreclosure is due to a loss of income. This can occur because of a loss of a job, an illness or even a divorce. During troubled times, it can be tempting to just try to ignore the situation rather than seek help. But sooner or later, you have to face the fact that you may lose your home, which is when you will act. At 1st Foreclosure Prevention, we give you choices that you can make that can occur throughout the foreclosure process.
Time is not your friend when it comes to foreclosure. The minute your mortgage payment is more than 15 days late, you are assessed with a late charge. The calls begin after the loan is more than 30 days past due and do not stop. Lenders today do not want to foreclose, but have no choice if you are not responding to them. They will most likely send you one letter before they file a Lis Pendens or a Notice of Default in the court of the county where your property is located. Then, everyone will know that you are going into foreclosure as this is public information. If you have already been through this process and received a notice, you are probably inundated with calls and mail from those who say that they want to “help.”
Who do you trust? Bankruptcy lawyers will urge you to file bankruptcy, which should never, ever be the first option when it comes to stopping foreclosure and, in many cases, will not save your home. Some companies that say they are loss mitigation companies will urge you towards a loan modification that they receive a fee for up front. At 1st Foreclosure Prevention, we do not push you towards any option that may not be right for you. We take a careful look at your particular situation and then come up with a solution to suit your needs. There are two solutions that we look at – keeping your home through a variety of different methods, and selling your home in a variety of different ways. Choosing one of these solutions that is right for you depends on your circumstances.
There are three ways that you can stop foreclosure and still keep your home. They include reinstating your loan, refinancing your loan or declaring bankruptcy. These choices may or may not work for you. Let’s take a look at them and see how they stack up against one another:
Reinstating your loan can consist of more choices. You may want to borrow money from a third party and get your loan up to date. You can talk to your lender on how much you need to borrow in order to stop the foreclosure process and get your loan current. Many times, the lender will waive some of the late fees if you promise to catch up on your mortgage.
In some states, there is no reinstatement available after the judgment has been entered and the date of the foreclosure sale set. Other states allow you a right to redeem your property even after the sale. This is something that your loss mitigation specialist at 1st Foreclosure Prevention can help you understand.
If you can reinstate your loan, there are several ways to do it. These include a total reinstatement, a repayment plan, a loan modification, a forbearance and a partial claim.
In order to use this option, you have to be able to make your loan current right away. This is usually done when you borrow from a third party. This option makes sense if you went into foreclosure due to some problem with income, such as the loss of a job, but are now back on your feet and financially able to pay your mortgage. This option does not make sense if you are struggling to pay your mortgage as it is and can often get you deeper into debt.
Lenders will often tell you that in order to stop the foreclosure process, you have to go for a total reinstatement. This is not true. Many lenders will accept a repayment plan if you are in a better financial position to repay the mortgage. The late mortgage payments can be spread throughout the other mortgage payments for up to 12 months, until you get caught up. If your lender is telling you that you need a total reinstatement, you can use a loss mitigation service that will be able to succeed with your lender where you cannot. This is because you are most likely not talking to the right party. This works well if you can make up the delinquent payments with larger payments and are not struggling to pay the mortgage.
A Loan Modification plan can help stop foreclosure as this entails a loss mitigation company renegotiating the terms of your mortgage. Many loss mitigation companies steer clients in this direction because they get a fee upfront. This is a good option if you are able to make the new payments and are financially stable. This is not a good option if you will be still struggling. It is also important to know that not every lender will accept a loan modification agreement and will proceed with the foreclosure.
You can suspend your mortgage payments for a short period of time by asking for a forbearance. This will allow you time to get back on your feet, after which you can make your mortgage current. This is a good option if you have lost your job and are optimistic about getting a new one that will enable you to pay your mortgage. This is not a good option if you just want to forestall the inevitable, although it can be a tool that comes in handy to stave off foreclosure if you are selling your property. Loss mitigation specialists at 1st Foreclosure Prevention can help you with a forbearance and let you know if it is right for you.
You may or may not qualify for this program that is usually reserved for loans made through Freddie Mac or Fannie Mae. You can pay about 30 percent of the delinquency due and the lender will work out a program with you so that you can repay the existing delinquency balance interest free. This can be a good option if you will be assured of a better financial position and can repay the mortgage.
The biggest advantage to using one of the reinstatement programs to stop foreclosure is that you can keep your home. The biggest disadvantage is that many people tend to lose more money when using these programs as they continue to struggle with foreclosure, fall deeper into debt and end up losing their home anyway. These options will only work if you can be sure of being able to pay at least 75 percent of your current mortgage payment.
If you have no equity in your home or very little, you may want to talk to your loss mitigation specialist at 1st Foreclosure Prevention about a workout agreement where the lender will take less for the home than what is owed in event of a sale. You need to have a professional loss mitigation specialist working with you when you choose this option so that your rights are protected. This can be an option for you if you do not qualify for a sale to an investor or owe a lot more on the property than the property is worth. It takes a great deal of negotiation to get the workout agreement to the point where it does you benefit. For many people, this is not an option, but for some, especially those who have property in a state of disrepair that prevents them from selling with a real estate agent, this can be the only option.
When you are facing foreclosure, you do not have to feel helpless. There are many options open to you to help you stop foreclosure from happening to you with regard to trying to keep your home and selling your home. When you are facing foreclosure, you should talk to a loss mitigation specialist at 1st Foreclosure Prevention who can give you a free evaluation based upon your set of circumstances and further explain how the foreclosure process works, how it can be prevented and what impact it can have on your credit.
You do not have to feel helpless in the face of foreclosure. There is help available to you. Whether you wish to keep your home or if you just want to sell it and get a fresh start, loss mitigation specialists can help you find the right option that will work for you.
You have made the first move towards helping yourself avoid the foreclosure process in getting this report. Make the next move and contact 1st Foreclosure Prevention so that you can get a free foreclosure evaluation of your situation and find out the right next step that you can take to prevent foreclosure from happening to you.