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| Stop Foreclosure - 7 Tips to Save Your Home Stop Foreclosure Article By Brendan Forde (see below) |
Faced with the threat of a foreclosure on their home, with all the weight of the
mortgage industry and its army of attorneys against them, the average
homeowner might feel like David facing Goliath.
But David defeated Goliath !
David had a sling and some pebbles.
You have an armory of tactics and options which can enable you to stop
foreclosure proceedings in their tracks.
There are certain basic rules to follow if you want to stop foreclosure on your
home.
>>> Do not leave your home. If you do, you may lose your eligibility for
assistance.
>>> Do not speak to the lender's Collection department, especially over the
phone.
>>> Never speak to any of your lender's representatives without having all your
facts assembled, and your strategy determined.
>>> Don't ask the lender what your options are - know your options before the
real discussions begin. Know and be prepared for the questions and forms you
will be faced with.
>>> Don't volunteer the fact that you are either unemployed or insolvent, or
you're dead in the water.
(If you are either unemployed or insolvent, you'd better change things pretty
quick, for the lender has to be convinced that you have the means to meet the
loan repayments, and he will want to see evidence supporting this fact before he
will stop foreclosure proceedings.)
>>> Don't rely on your memory - have everything written down clearly, and all
your credit history records at hand.
>>> Speak to the lender's Loss Mitigation or Foreclosure department. Be firm,
and insist on speaking to the right people every time.
>>> Make a real effort to understand the legal terms relating to mortgages. To
stop foreclosure proceedings, you need to speak the same language as your
adversaries.
mortgage industry and its army of attorneys against them, the average
homeowner might feel like David facing Goliath.
But David defeated Goliath !
David had a sling and some pebbles.
You have an armory of tactics and options which can enable you to stop
foreclosure proceedings in their tracks.
There are certain basic rules to follow if you want to stop foreclosure on your
home.
>>> Do not leave your home. If you do, you may lose your eligibility for
assistance.
>>> Do not speak to the lender's Collection department, especially over the
phone.
>>> Never speak to any of your lender's representatives without having all your
facts assembled, and your strategy determined.
>>> Don't ask the lender what your options are - know your options before the
real discussions begin. Know and be prepared for the questions and forms you
will be faced with.
>>> Don't volunteer the fact that you are either unemployed or insolvent, or
you're dead in the water.
(If you are either unemployed or insolvent, you'd better change things pretty
quick, for the lender has to be convinced that you have the means to meet the
loan repayments, and he will want to see evidence supporting this fact before he
will stop foreclosure proceedings.)
>>> Don't rely on your memory - have everything written down clearly, and all
your credit history records at hand.
>>> Speak to the lender's Loss Mitigation or Foreclosure department. Be firm,
and insist on speaking to the right people every time.
>>> Make a real effort to understand the legal terms relating to mortgages. To
stop foreclosure proceedings, you need to speak the same language as your
adversaries.
Stop Foreclosure article
continues...
If you cannot fully
understand the options, or
the terms used, you should
certainly speak to a HUD
approved counselor - ring
(800) 569 4287.
And do this as soon as you
realise you might be
heading for foreclosure.
continues...
If you cannot fully
understand the options, or
the terms used, you should
certainly speak to a HUD
approved counselor - ring
(800) 569 4287.
And do this as soon as you
realise you might be
heading for foreclosure.
Know your options ! Know your rights !
Stop Foreclosure - Tip 1
Read all communications from your lender. Time is your enemy, so the earlier the potential problem is recognised
by both parties, the better the chances of a resolution.
Stop Foreclosure - Tip 1
Read all communications from your lender. Time is your enemy, so the earlier the potential problem is recognised
by both parties, the better the chances of a resolution.
Stop Foreclosure - Tip 2
If your property is FHA or VA insured, then your lender must give you the opportunity for a workout. If they refuse,
then the FDA/VA may fail their claim for foreclosure.
Stop Foreclosure - Tip 3
If you are suffering financial loss due to the death or loss of a spouse, illness, or unexpected increase in your
outgoings, contact the lender and request a loan modification, which effectively changes the terms of the loan to
lower the payments.
This is a very common process, but you will need to provide evidence about the change in your circumstances.
If you feel that you qualify for a loan modification, and your lender refuses, contact the HUD for advice.
Stop Foreclosure - Tip 4
If your loss of income is temporary, contact your lender and request a forbearance. This means that you may be
granted a period during which your monthly payments are "suspended", after which you must resume your monthly
payments plus a partial payment towards the payments you missed.
Most lenders have a forbearance program, but may require you to make an initial down payment.
Stop Foreclosure - Tip 5
If you have a FFA/HUD loan, you may qualify for a partial claim if the present loan is between 4 months and 12
months delinquent. The partial claim has to be repaid only after the original loan has been repaid in full.
Any of these measures can enable you to stop foreclosure on your home.
Stop Foreclosure - Tip 6
If all else fails, you could always file for bankruptcy at any time during the lender's collecting process, and this would
put an immediate stop on the lender's activities.
Unfortunately, new bankruptcy reform legislation, to be introduced in October 2005, will effectively invalidate this
tactic.
Under the new legislation, you must receive credit counseling from an approved agency 180 days - yes, that's 6
months - before you can file for bankruptcy.
By which time the lender could have filed for foreclosure, and you could be out of your home.
Stop Foreclosure - Tip 7
Remember these facts.
The US is facing an ever-increasing tidal wave of homeowners defaulting on their mortgages. The average cost to
the mortgage industry for each foreclosure is around $25000 !
Foreclosures cost lenders money, big money, so it is in their interests to reach a workout with the borrower, either to
rescue the mortgage, if this is possible, or to reduce the loss as a result of foreclosure.
Don't be intimidated by the lender or his attorneys. Appraise yourself of your exact financial position. Seek advice.
Know your rights. Know your options. Be honest in your statements. Keep a written record of all communications.
You can stop foreclosure in its tracks. And save your home.
About the author:
After 15 years working in the IT industry, author Brendan Forde now specialises in the financial world, particularly the mortgage
and insurance sectors. For your free Mortgage Calculators, and tons of mortgage advice and information, visit
http://www.mortgageloans-info.com
If your property is FHA or VA insured, then your lender must give you the opportunity for a workout. If they refuse,
then the FDA/VA may fail their claim for foreclosure.
Stop Foreclosure - Tip 3
If you are suffering financial loss due to the death or loss of a spouse, illness, or unexpected increase in your
outgoings, contact the lender and request a loan modification, which effectively changes the terms of the loan to
lower the payments.
This is a very common process, but you will need to provide evidence about the change in your circumstances.
If you feel that you qualify for a loan modification, and your lender refuses, contact the HUD for advice.
Stop Foreclosure - Tip 4
If your loss of income is temporary, contact your lender and request a forbearance. This means that you may be
granted a period during which your monthly payments are "suspended", after which you must resume your monthly
payments plus a partial payment towards the payments you missed.
Most lenders have a forbearance program, but may require you to make an initial down payment.
Stop Foreclosure - Tip 5
If you have a FFA/HUD loan, you may qualify for a partial claim if the present loan is between 4 months and 12
months delinquent. The partial claim has to be repaid only after the original loan has been repaid in full.
Any of these measures can enable you to stop foreclosure on your home.
Stop Foreclosure - Tip 6
If all else fails, you could always file for bankruptcy at any time during the lender's collecting process, and this would
put an immediate stop on the lender's activities.
Unfortunately, new bankruptcy reform legislation, to be introduced in October 2005, will effectively invalidate this
tactic.
Under the new legislation, you must receive credit counseling from an approved agency 180 days - yes, that's 6
months - before you can file for bankruptcy.
By which time the lender could have filed for foreclosure, and you could be out of your home.
Stop Foreclosure - Tip 7
Remember these facts.
The US is facing an ever-increasing tidal wave of homeowners defaulting on their mortgages. The average cost to
the mortgage industry for each foreclosure is around $25000 !
Foreclosures cost lenders money, big money, so it is in their interests to reach a workout with the borrower, either to
rescue the mortgage, if this is possible, or to reduce the loss as a result of foreclosure.
Don't be intimidated by the lender or his attorneys. Appraise yourself of your exact financial position. Seek advice.
Know your rights. Know your options. Be honest in your statements. Keep a written record of all communications.
You can stop foreclosure in its tracks. And save your home.
About the author:
After 15 years working in the IT industry, author Brendan Forde now specialises in the financial world, particularly the mortgage
and insurance sectors. For your free Mortgage Calculators, and tons of mortgage advice and information, visit
http://www.mortgageloans-info.com
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