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Foreclosure - How To Choose Help

Foreclosure is the action taken by the lender, usually the mortgage company, in order to retrieve the property in hopes of regaining back some or all of the money that they allowed an individual to borrow. The action begins after the homeowner allows the mortgage payments tofall behind, generally three or more payments past due.

In certain circumstances, mortgage companies can take action sooner if the loan is a brand new loan and they feel as though there may be fraud or something else going on that puts them at risk for loosing a lot of their money.

The foreclosure action is a process though, so homeowners should not move out upon first notification of a pending foreclosure. Some states could take a couple years but others could take less then two months. It is important to make sure that you are communicating with the lender to fully understand how long you have for your particular situation.

Talk with your mortgage company and even call the attorney that they hired to handle the foreclosure. You are not risking anything by calling their attorney, as this is not a criminal case.

The foreclosure laws are pretty black and white and since the job of the attorney is to do what is in the best interest of the bank, they will be more then willing to talk with you about the laws surrounding the situation.

What Homeowners Should Do Next

The moment that you hear about possible foreclosure action you need to be on the phone and making phone calls. Hopefully, you would have planned for what to do since you already have known for a while that you were in financial trouble, but if not, make sure that you at least looking into your options once notification comes of pending action.

The first thing you will want to do is to contact your mortgage company. Find out the status of the mortgage, the total amount due, and if there are any attorney fees yet. If there are not yet any attorney fees yet, ask when they speculate that there will be.

Talk about what options you have and advise them of what monies you do have at that moment to maybe stop the pending foreclosure. Depending on your payment history, the reason you fell behind on payments, and the amount of money that you have at the moment, will determine what repayment plan, if any, can be set in place.

If you are given a repayment plan make sure that you are sticking with it as some state will allow the mortgage companies to pick up in the foreclosure process where they left off in the event you fail to follow through with the repayment plan arrangements.

Contacting Other Organizations For Help

There are many nonprofit organizations out there that are there to counsel you and to help you find a way to get back on track. If your mortgage company did not send you a list of organizations that you can call, simply visit the HUD website and by searching for your state and even county, you will find information on who you can call for possible help.

You may also want to check around to see if there are any local churches around that can help. Catholic charities are generally very good at providing some assistance, but of course you cannot expect them to give you thousands of dollars.

The most important thing though is to make sure that you are not paying for help. There are a lot of companies out there that want to state that they can help you with your loss mitigation process. But since these companies are not able to do anything above and beyond what you can do for yourself for free, you should pass them up. Save that money and put that towards your mortgage payments.

The Best Routes To Take For Help

The best place to turn to for help is that of your mortgage company. This is why it is advisable to always call them first before anyone else. Make sure that you are talking to their loss mitigation department or their hardship department and not the collections department.

While you may ultimately have to talk to the collections department, they are not able to offer you anything other then a repayment plan. If you have a little money to start a plan then that is perfect. If not, then you need a higher department.

Contrary to popular opinion, the mortgage company does not want your home. They are in the business of collecting money off of interest and servicing contracts. They are not in the real estate market. The mortgage company does not want your home; they simply want you to pay what is owed.

Because of this fact, the loss mitigation department can be your best friend. With loan modifications, forbearances, repayment plans, and even short sale options, there is no reason to go anywhere else before talking with them.

In the end, it is up to you, the homeowner, to make sure that swift action is taken in the event you miss some payments. While you cannot predict the future and you prevent a lot of the unexpected expenses that you will come across in life, you can be in control of what you do about it. Talk with your mortgage company, get advice, and know your rights. You should have no problem getting your mortgage account squared away as long as you are being proactive.