Learn How To Stop Foreclosure

In the current economic climate it is becoming increasingly difficult for people to keep hold of their homes. If you are in danger of losing your home it can seem a bleak, terrible situation. However it is possible to learn how to stop foreclosure and keep your home. There are numerous reasons why people may potentially lose their homes. They may have lost their job, going through a painful divorce. An accident may mean that they have unexpected expenses that they have to pay for.

In some cases, an unreasonable mortgage repayment rise can make repayments more difficult. The first thing to do is to call your lender and make clear what your financial situation is. It is vital that you do not delay or you could be served with a notice of default. Discussing the matter with your lender could help you come to an alternative arrangement to help you pay off your arrears. This is known as forbearance. If you do agree to an alternative agreement then you must stick to the payment plan or you could once again face a notice of default, a court date and likely eviction.

In some rare occasions a lender might forgive a payment that you cannot pay back, provided that you can then return to paying the agreed amount at a later date. This rarely happens so it is best not to bank on this occurrence happening. What is more likely is that a lender will add money each year to your agreement until you have caught up with the payments. It may be worth asking to see if your interest rate can be frozen or reduced in order to allow you to make the payments. It is worth seeking independent financial advice to see if you qualify for this. In some instances you may also be able to qualify for a second loan that can help you repay the debt. A financial advisor will be able to say if you meet the criteria necessary for this kind of loan.

These are all things you can do before you are served the notice of default. This is why it is better to get in contact first to prevent this from happening in the first place. If you cannot meet the payments there are a few other options available to you. The first thing you can do is sell your home, either via a real estate agent or a discount broker. An independent assessment should give you an idea of the value of your home and to see if you can make up the payment. Alternatively a short sale might be possible. However a lot of lenders do not accept this, especially if a foreclosure is more profitable. Make sure you get advice on this before going ahead. Finally you can sign a deed in lieu of foreclosure, effectively giving back your home to the lender. In any of the options available to you it is possible to negotiate maintaining occupancy in the property. Remember any of these options will negatively affect your credit rating which is why it is vital to look at every possible option before a notice of default is served. Stop foreclosure and sell your house today! www.TheCincyHouseBuyer.com