Stop Foreclosure Now

Home owners today who are facing foreclosure often dread dealing with the facts that got them to that place. If they think back to when they first bought that home, losing their home was probably the furthest thing from their mind. Few home owners actually plan to go into foreclosure.

Reasons for Pending Foreclosure

Most homeowners have faced sudden extenuating circumstances that force them to stop making timely mortgage payments. Here are a few of those reasons:

• Job loss / unexpected unemployment
• Divorce/ loss of second income
• Sudden illness or medical emergency
• Death in the family
• Excessive debt obligations
• Job demotion or promotion denials
• Inability to pay an adjustable rate that increases

Ways to Avoid Foreclosure

The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.

Don't put it off, be embarrassed or ignore letters from your lender because those responses will make the situation worse, not better. Depending on your particular situation and hardship circumstances, here are some options your lender might propose to you:

Ways to Stop Foreclosure

When the lender files a Notice of Default, your options are limited. That is why it is better for you to call your lender before falling behind on your payments, as lenders are often reluctant to work out repayment schedules after foreclosure proceedings have been commenced.

You will be given a certain time period to bring the payments current, pay the costs of filing the foreclosure and stop the foreclosure. This is called reinstatement of your loan. If you cannot make up the missed payments and the lender will not work with you, here are a few other options to stop foreclosure:

• Sell Your Home.
  Talk to one of our experienced agents and get an opinion of market value of your home. Typically if your home is worth less then you owe the bank and you have suffered a hardship, your bank may approve you to sell for less then you owe.


• Consider a Short Sale.
  If your home is worth less than the amount you owe, you might be a candidate for a short sale. A short sale will affect your credit, but it's not as bad as a foreclosure. Our agents will negotiate with your lender to determine if the lender will cooperate on a short sale.


• Sign a Deed-in-Lieu of Foreclosure
  This is called deeding the home back to the lender. The homeowner gives the lender a properly prepared and notarized deed, and the lender forgives the mortgage, effectively canceling the foreclosure action. Lenders state that deeds-in-lieu of foreclosure affect credit the same as a foreclosure.