When you have received notice that your home is about to go into foreclosure, there is no time to waste. Even at this stage there are ways to stop foreclosure fast. Here are five of them.
When you get this notice, you may feel fear or panic that you are on the brink of losing your home to foreclosure. You have to put these feelings aside and take immediate action because you won’t have a lot of time to try to stop the foreclosure.
Because you only have limited time, here’s what to do.
1. The first thing you should do is to contact the financial institution that holds your mortgage to setup a meeting. Insist on a face to face meeting as soon as possible with a person who has authority to make decisions. Refuse to discuss your situation over the phone. Come to the meeting prepared to answer questions about your current employment status, your wages, your assets, and current expenses.
The lender should at least be willing to discuss options with you. If you are able to show that you have at least some resources at your disposal, you could qualify for a modified loan. Options could include an interest only loan for a set period of time, an extension on the term of your mortgage, or a reduction in the interest rate. The goal of these or other alternatives is to lower your payments so they are affordable for you.
2. If you have some equity in your house, you could try to arrange a loan equal to the equity value and then use this to pay down your arrears. This will get you out of your current situation but you will also need to renegotiate the terms of your mortgage so you are able to afford your payments.
3. You may be able to get a one time payment from the FHA Insurance fund to bring your mortgage up to date. You may qualify if you are between four and twelve months delinquent on your payments and will now be able to make your full mortgage payments.
This fund is for those who may have fallen behind due to a temporary situation, are now able to make current payments but can’t afford to pay off arrears.
4. Get help from government agencies. There are many people who are dealing with foreclosure. The government recognizes the problem and has setup several programs to help.
These include President Obama’s Mortgage Modification Program and Project Lifeline. Some programs are designed to be used for a short period of time. Others offer a more permanent fix if you qualify. HUD is also a good resource to contact for assistance.
5. As a last resort, you may be able to file a suit against your creditors at your local court. Because of the backlog of cases needing to be heard, this will give you a lot of extra time to get your finances in order. Contact a real estate savvy lawyer for advice about this before you spend any money filing a suit.
If you want to stop foreclosure fast, you need to take action right away. Don’t put it off and hope foreclosure won’t happen, because it will and then it will be too late to act.
Learn about 6 practical steps you can take to avoid foreclosure. If it’s too late for that, find out how to stop a foreclosure by going to getforeclosurefacts.com.
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