Preventing Foreclosure – Tips for Recession Strapped Homeowners
Avoiding a home foreclosure is possible if you take the proper steps and are willing to endure some embarrassing and uncomfortable moments. A foreclosure’s impact last much longer than the actual process itself which is why you should do everything you can to prevent the bank from taking this drastic step against you and your family.
To prevent a foreclosure keep in mind that the banker is making the decision on whether to proceed with the proceedings or give you another chance to make good on the note. That is why you will get better results by being upfront with your lender. Loan modification is the best remedy. You can adjust your interest rates and/or lower your monthly payment making your mortgage affordable.
Some banks, in the interest of avoiding foreclosures with their properties, will agree to sell a house quickly for less than its market value. This is called a short sale. It can stop foreclosure, but its probably more beneficial to the bank than it is to you. It acts very similarly to a foreclosure in terms of reducing your credit score, though a short sale will mean that you could be eligible to buy a home again much sooner.
If neither loan modification or short sale works, then there isn’t too many options remaining. Here is what you can expect to experience:
After you miss the first payment you will get a Notice of Default in the mail.
Expect your phone to start ringing where trained collection phone agents try and get you to pay even modest sums towards the default amount.
After 90 days of missed payments the lawyers typically get involved.
After 180 days of being in default your home could go into an auction. Once the house is sold to the highest bidder, you can leave the property. Or, you will be evicted.
View how a credit attorney helped a local couple get qualified for a mortgage with a less than perfect credit by deleting charge offs and collection items. You can also visit creditforcouples.com to get a free credit repair letter or call 1-866-246-7311 for a free consultation with a credit expert.
Tags: credit repair, debt, law