Preventing your home from going into foreclosure.
There are a number of options available to you to stop foreclosure
faced with a foreclosure does not mean the end of the world. You do have
options that you’ll need to consider before having to lose your home on
the courthouse steps.
Again, the goal of both you and the lender is for you to keep your home
and the lender to continue to receive their payments. There are several
options that your lender may offer you if you miss a payment and want to
An adjusted repayment plan.
If you suffer a temporary short-term financial setback, your
lender may allow you to pay off your past due amounts in several
installments over several months.
Modifying you loan.
As mentioned above the lender does not want your home. In many cases,
they can adjust the terms of your loan - most often by lengthening out
the amortization schedule of your loan, lowering the interest rate or
rolling the deficiency into your loan and reamortizing the new balance,
all in an effort to bring your loan current. .
A short sale.
If the value of your property has dropped and the loan balance exceeds
the value of your home, the lender may allow you to sell your home for
less than the outstanding loan amount, takes the proceeds and forgive
you of any remaining debt. Please refer to more complete information
about short sales here.
A short refinance.
Again if your property value had dropped dramatically, the lender may
release you from your existing debt and refinance the outstanding
balance into a new loan.
Obtain a "private money mortgage".
While the rates and fees for this type of loan may be high, a loan from
a private lender may allow you to buy time to sell your home in an
orderly fashion and avoid default or foreclosure.