Stopping Foreclosure

Stop Foreclosure – 4 Steps to Stop Foreclosure Fast

If you are reading this article, then the first thing you should know is this: you can stop foreclosure. Millions of Americans are behind on their payments, or have already had their home foreclosed out from under them, and millions more are likely to follow in their footsteps. If you would like to avoid becoming one of these casualties of the Great Recession, then you’ll want to do everything in your power to stop the foreclosure process.

When contacted by your lender – and they will contact you – you should take their calls very seriously, and not play the avoidance game. Most do, in fact, avoid the phone calls, and this is a very serious mistake, likely to lead to your home being foreclosed.

Even if the foreclosure process has already been initiated against you and your property, you can still take steps to stop it. Following the four simple steps below will stop foreclosure in it’s tracks, no matter where in the process you may happen to be.

  1. Meet with your lender. If you have received a foreclosure notice, the first thing you should do is set up a meeting with your lender. At the meeting, propose setting up a repayment plan. If your lender agrees on a new payment schedule, your foreclosure process will be stopped right away. Keep in mind, however, that you shouldn’t agree to a payment plan you can’t realistically hope to meet. If you fail to repay the amount owed as per your agreement, then the process will start once again. Once restarted, the foreclosure process is even more difficult to stop, so in order to avoid this unhappy scenario, it is extremely important to stick with your new repayment plan
  2. Refinance. If your credit is still decent, you should attempt to refinance your current mortgage into one with terms you can live with. Just be certain that the new terms are terms you can meet, and understand that with the decline in market values, it simply may not be possible to refinance if you owe more on your house than it is currently worth.
  3. Forbearance. In the forbearance option, the mortgage company or the lender will stop the foreclosure process for a predetermined length of time, in order to allow you to get back on your feet financially. In a forbearance, you will be given breathing room, and won’t be required to make payments for a period of time ranging from 2 to 6 months, depending on the lender. However, forbearance should not be entered into lightly. If, after the forbearance period, you still can’t afford your payment, the foreclosure process will resume and will often be accelerated, with the forbearance period counting against you in calculating the time gone without a payment.
  4. Loan Modification. There are several programs available in which federal funds are available to motivate banks to agree to a loan modification contract with the borrower. What this means is that the banks will agree to new terms that are favorable to you, typically a lower interest rate, a lower payment, and even a reduction in principle. For most homeowners facing foreclosure, this is probably their best option, as most people fall behind simply due to the fact that the payments are unaffordable.

When considering all of these options, it is to your advantage to obtain professional or legal representation. To this end, a professional stop foreclosure company can intervene on your behalf, and make known to you the entire range of options, including loan modification, that are available. There are solutions, but they will require you to be honest about your situation and take proactive steps to resolve it.