Stop Foreclosure – 7 Tips to Save Your Home

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. 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 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 communucations.

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 is now specialising in the financial world, particularly the mortgage and insurance sectors.

Tips To Help Stop Foreclosure

The consequences of foreclosure can be far reaching. While foreclosure laws vary from state to state, general strategies exist that apply in most situations. It should be kept in mind that stopping foreclosure does not always imply keeping the house. Stopping a foreclosure may only benefit the home owner by being able to keep a foreclosure off of their financial record. Keeping something like this out of the financial history can be beneficial as the home owner tries to get back on their feet. They will be more likely to be approved for a new home loan or allowed a faster approval for a new apartment.

One way to stop a foreclosure is to pay off the defaulted loan amount during the pre-foreclosure grace period. This grace period is the last chance the home owner has to stop the foreclosure process before being forced to leave the residence. Each state has their own rules as to how long the grace period must be. The law requires that a grace period be given before an attempt to take the house back is made by the lender. This allows the home owner a chance to rectify the situation before the lender takes more drastic actions.

The homeowner can avoid a foreclosure in their financial history if they can sell their property to another person and make enough money from the sale to cover the balance of the mortgage. Since the new buyer will pay off the original lender, the former home owner’s record will not reflect that they lost their home because of foreclosure, it will just show up as a normal sale in their past. A person can buy the property from the owner or from the lender in a public auction after the grace period. If the home owner can find a buyer willing to pay more than the remaining amount of the loan, the home owner may even be able to walk away with some cash in hand for the deal.

If the lender is willing to accept less money than what is left of the loan, they may approve the owner to complete a short sale. If the home owner can find a buyer for the property for an amount lower than what remains on the loan, the lender will have the option of approving the sale and forgiving the difference, approving the short sale and demanding the difference of the loan, or refusing to approve the sale and allowing the house to fall into full foreclosure status, public auction and all.

It may seem like the above listed information is “not good enough”, but quite frankly, few options exist for keeping a home after a foreclosure has already been initiated. This does not mean that a person has to have the rug torn completely out from under them, it just means that a person shouldn’t expect miracles. While it may take some time and a willingness to adapt to the new change, recovering from a foreclosure is possible. Recovery is also possible if a person avoids a foreclosure but is still required to leave the residence.

Fighting a foreclosure alone can be a stressful event in a person’s life. Hiring a lawyer specially trained to deal with banks and lenders may stall the process considerably in favor of the home owner. Even a few extra days to fight the process can help the home owner prepare for life after losing their home. The home owner should never forget that they have rights during the foreclosure process as well, and a lawyer can make sure that those rights remain in tact.

Read more: http://www.articlesbase.com/mortgage-articles/tips-to-help-stop-foreclosure-2071489.html#ixzz1ODmBqq3n

5 Tips to Stop Foreclosure Fraud

1. Work only with a nonprofit, HUD-approved counselor. If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development’s list of approved agencies. Visit HUD’s website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors–by mail, phone, or in person–make sure the counseling agency is HUD-approved before you do business with them.

2. Don’t pay an arm and a leg. You should not have to pay hundreds–or thousands–of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier’s check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.

3. Be wary of “guarantees.” A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home–but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.

4. Know what you are signing–and be sure you sign it. Don’t let a counselor pressure you to sign paperwork you haven’t had a chance to read through carefully or that you don’t understand. Don’t sign any blank forms or let “the counselor” fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

5. If it sounds too good to be true, it probably is. If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission’s webpage on Help Foreclosure. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center’s Consumer Action Website.