6

Steps
To Save Your Home
from Foreclosure
www.stopforeclosureshelp.com

WHY?
Foreclosure frenzy has subsided over the past couple of years. Real estate market in the
U.S. that had been flooded with distressed properties after the 2007-08 housing crisis
are rebounding, thanks in large part to the improving economy, historically low mortgage
rates, and stable job sector.
But these positive market trends have hardly come to the rescue of thousands of
homeowners who continue to be underwater.
A couple of missed mortgage payments set the ball rolling, and most owners - unaware of
their legal rights concerning foreclosure laws wind up losing their homes. Apart from
causing an emotional crisis, foreclosure becomes a major financial setback as lenders
take away their homes at a time when property markets are finally looking up, and homes
are building equity.
We wont waste our (and your) time on giving advice like get your finances in order, or
adjust your standard of living. If you have received a foreclosure filing, you must already
be beyond that stage. So lets get right to the point and discuss some very impactful
financial and legal steps that you can take to save your home from foreclosure.

You Lender
Got it Right

Ensuring your lender got it right.

You wont believe if we tell you how many times mortgage companies make a batch of
foreclosure filings. To be more precise, they screw up all the time. For example, your
lender may not have the right to initiate foreclosure proceedings against you in the first
place because they bundled your loan and sold it to third party investors.
After receiving a Notice of Default, your first should step be to examine your mortgage
documents thoroughly and based on that, decide your future course of action. You may
have to hire professional legal help specializing in foreclosure cases to help you with this.

Financial
troubles are
temporary

Your financial troubles are temporary.

Foreclosure proceedings are a tedious process for lenders. Not only you but your lender
may also want to avoid the hassles. If you know you are going to miss mortgage
payments, dont wait to receive a notice of default. Instead, approach your lender and ask
for forbearance.
If some particular circumstances like loss of job or divorce landed you in financial
troubles, your lender might agree to temporarily reduce or suspend your mortgage
payments for a short period.
This solution works best in situations when you can prove to your lender that your
financial troubles are temporary and you would be able to make the full amount of
mortgage payments shortly. In most cases, your mortgage payments may be suspended
for up to six installments or reduced for up to 18 months.

Turnaround
is in sight

When no turnaround is in sight

If you believe your financial situation wont make a turnaround anytime soon, you should
then go for a loan modification or loan restructuring.
Your lender can spread out your mortgage payment over a longer period by increasing
the amortization period. They can also decrease the mortgage interest rate. As a result,
you will have to pay a lesser amount of monthly mortgage payment.

Take a loan

If you can take out a new loan

Most lenders will consider your request for refinancing if you havent been delinquent on
your loan for more than 90 days and your credit score is decent.
Refinancing is basically to take out a new loan to pay off your existing mortgage. You may
have your mortgage payments reduced by refinancing if your lender charges a lower
interest rate. However, you need to keep in mind that you will need to pay processing
costs and another fee all over again when you refinance.

Get help

Check out if you can get help from the

government
You can modify your loan payments through Home Affordable Modification Program
(HAMP) or the Home Affordable Refinance Program (HARP) if you loan is secured or
funded by the government programs.
Similarly, you can take advantage of the Veterans Administration, if you have served in
the army.

Everything
else fails

When everything else fails

You will need to file for bankruptcy if everything else fails. Depending on your situation,
your foreclosure lawyer may file for either Chapter 7 or Chapter 13 bankruptcy. A
bankruptcy filing will damage your credit score, so it should be your last resort.

Bottom Line
Its not just your home that you lose in a foreclosure, but a
lot of other things also: your credit score, your social
status, and most importantly your confidence concerning
managing your finances.
A foreclosure can damage your credit report severely,
rendering your unable to take out a new loan for years.
Take the above-mentioned steps depending on your
individual situation, and you will eventually find the light at
the end of the tunnel.

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