Options to Avoid Foreclosure:
Foreclosure is very frustrating not only for borrowers, but also their families and for the lenders themselves. For every homeowner that loses his or home the lender losses thousands as well. There are some ways to avoid a foreclosure which are given below:
Talk to Your Lender:
The first step that you can take to avoid foreclosure is to have start negotiations with your lender. Many homeowners are scared and offended to the point that they start ignoring calls and letters from the lender, and at times that is the worst feeling for the borrower thought out the process. Working with us to represent you we may be able to help you avoid foreclosure process and would try to deal with you on a personal level.
The Federal Housing Authority:
If your loan was approved by FHA, we can get the help you work with an FHA Negotiator at your lender that may assist us through possible alternatives. He will negotiate with the beneficiary and help you work out a monthly payment plan. If cases where your residential area is declared a natural disaster territory by FHA and you are facing foreclosure, then federal housing authority plans to assist you. Sometimes you can get relief from your monthly loan payments through a forbearance plan.
Through this program work with your lender to suspend your payments on a temporary basis followed by agreeing to other terms to satisfy your loan amount. This option works well if you know that a large amount funds will be coming your way soon or know you will return to work after being off of work for an extended period of time. The options available after a forbearance is usually a reinstatement, where you pay the outstanding amount in a lump sum, or possibly a modification. This is considered a good option to avoid foreclosure.
Loan Modification is a really good option in which your lender agrees to modify the terms of your loan to make it affordable for you. In cases where there is mortgage insurance you may be eligible for a partial claim against that insurance, if you’re able to begin making payments again, but not able to bring your account current. The partial claim can many times be an interest-free loan that will bring your account current and you can resume payments.