How do you fend off foreclosure?

One of the things that is happening to more people than we would like is foreclosure, and in the United States right now, foreclosure is an ever present possibility. Trying to keep foreclosure from happening, after the dominoes have begun to fall, is not exactly easy, but like any disease, the sooner it is caught, the better the chance you will make it through. Depending where you are in the foreclosure process, it may not be that easy to get out of this unfortunate situation.

If you are early on in the default process, you can get back from bankruptcy because you have not missed more than one or two mortgage payments and lenders have not had to work hard to get everything back on track.Of course, this begins to disappear the farther you get into the process. As the debt increases, so to do the legal costs of the bank. At this point, ignoring the problem will fix nothing.

The first moment you think you are going to miss a mortgage payment, you need to contact the bank and let them know. By contacting them, you are alerting them to the fact that you may be late on the payment this month, and that will actually get you a lot of lead way as a result.

Now, it should be noted that this alone is not going to fix your mortgage problems and if you continue to forget to pay your mortgage, no matter how many times you call the bank is going to come for their loan.

What else can you do to prevent your house from going into foreclosure, helping you keep your home.

1. Loan Modification: If you can change at least one term of your mortgage, you can bring the loan current. This is done by capitalizing the interest that is owed, extending over a fixed period on the loan. You can also lower the interest rate to reduce how much you pay each month.

2. Repayment Plans: When you give a written agreement to the borrower, you can shoe them you will have the loan up to date in a certain amount of time. Usually this will not be over a year and a half, and it is used for borrowers who have suffered layoffs, illnesses or more.

3. Forbearance Agreement: In this agreement, the lender reduces or suspends payments for a certain amount of time. Usually, this will be no more than three months. This is used to help people when they are in short-term unemployment situations, illnesses or other events that disturb their regular payments.

4. Preforclosure sales: These are a bit more drastic but they are good for owners with home equity still on their homes because whatever is left after the home is paid off, goes to them.

These are just a few of the things that can be done to prevent foreclosure from happening to you. They may not work, and they are Band-Aid solutions, but they should buy you enough time to help you out in the long run.

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