Frequently Asked Questions

Methods For Stopping A Foreclosure

It is sad that the present financial situation with people losing jobs and banks raising their interest rates, more and more people are reeling under the pressure of mortgage payments and debts. Not all are able to sort out their payment defaults. It is equally true that those defaulting on their mortgage payments do not want to lose their property to foreclosure either. So how do you sort it? There are some ways of stopping foreclosure proceedings.

What Is Loss Mitigation?

Loss mitigation is the third party intervention in the form of an intermediary agency or a part of the bank (who is the lender) between the lender and the borrower in cases of mortgage payment default by the borrower. The main aims of loss mitigation are as follows:

  • To reduce the risk of total loss on the part of the lender.
  • To reduce the risk of a foreclosure on the part of the borrower.

How To Avoid Foreclosure And Keep Your House

Foreclosure proceeding is not just losing your property but also includes huge fees for lawyers, court fees and procedural expenses. There are plenty of reasons why one should try and avoid a foreclosure proceeding on their property. You can legally put an immediate stop to the foreclosure proceedings by either filing a restraining order, suing the lender or by challenging the validity of the debt in a court of law.

What Is A Short Sale?

A short sale is another way of foreclosure prevention. If a real estate sell falls short of the amount that is owed on a property then a short sale occurs. The mortgagor or the lender agrees to discount a certain portion of the loan balance. The owner sells off the property generally at a price lower than the outstanding loan and turns over the proceeds to the bank or the lender. In all short sales the loan amount is mostly never fully paid. There is no regulatory body that governs this transaction.

What Is Pre Foreclosure And Pre Foreclosure Sale?

Pre foreclosure period is the time in between the public notice put up by the lender for payment default and the actual foreclosure sale proceedings. One can utilize this time effectively to avoid a foreclosure sale by: Paying off the defaulted mortgage payments. Selling the house.

What Is A Foreclosure Workout?

There is a buzz all around that lender are increasingly working against the borrowers in the name of foreclosure workout and are actually trying to force the homeowners into foreclosure. Is that true? Federal regulatory bodies are getting wary at the current financial situation and are urging the lending bodies to workout arrangements such that the homes are not seized in foreclosure.

What Is Pre Foreclosure Work Out?

A pre foreclosure work out refers to the different ways that a homeowner can negotiate with the lender on the mortgage terms during the pre foreclosure period so as to avoid a foreclosure and losing one's home. It is during the pre foreclosure phase that as a homeowner you must diligently analyze your circumstances. Professional pre foreclosure help is available; however there are a lot of things that a homeowner can do.

Rate Modifications

Although rate modification is considered to be another name for loan modification and is a way to avoid home foreclosure, let's examine some of the circumstances when a lender may consider modifying the home loan rate. Remember, rate modification may not always refer to pre foreclosure workout only, rate modification may be levied by the lender in case of a market volatility when a revised rate on a mortgage is beneficial for the bank. However there should be such clause in your loan agreement to support rate modification when it is solely for the bank's benefit.

How A Loan Modification Can Help You

Although rate modification is considered to be another name for loan modification and is a way to avoid home foreclosure, let's examine some of the circumstances when a lender may consider modifying the home loan rate. Remember, rate modification may not always refer to pre foreclosure workout only, rate modification may be levied by the lender in case of a market volatility when a revised rate on a mortgage is beneficial for the bank. However there should be such clause in your loan agreement to support rate modification when it is solely for the bank's benefit.

Avoid Foreclosure For A Secure Future

Foreclosure is a bitter reality when paying dues or mortgage payments are hard to make. As the best way to deal with foreclosure would be to avoid it, here are a few guidelines for all borrowers. Many home owners ignore the problem, to act on time is to avoid foreclosure. Lenders generally do not want to go for foreclosures, so the borrower should negotiate with the lender for assistance to make through difficult financial situations.

Legal Foreclosure

It is the lawful and professional procedure in which the mortgage lender can obtain a court ruling that terminates the borrower's equitable right of redemption. A borrower is one who mortgages any asset to obtain a loan from a lender. When a borrower defaults i.e. falls back on payments or is unable to pay the debt, the lender will try to repossess the property or asset that the borrower mortgages as security interest on the loan.

Foreclosure Mitigation For Home Owners

Loss mitigation is a program adopted by the government and mortgage businesses to stop foreclosure. It's essentially program to help borrowers and home owners find alternatives to foreclosure, with a detailed financial analysis and by offering customized solutions to their financial issues. The loss mitigation program varies with every lender.

Foreclosure Mitigation For Home Owners

Loss mitigation is a program adopted by the government and mortgage businesses to stop foreclosure. It's essentially program to help borrowers and home owners find alternatives to foreclosure, with a detailed financial analysis and by offering customized solutions to their financial issues. The loss mitigation program varies with every lender.

Foreclosure Prevention For Defaulters

The best way to prevent foreclosure is by foreclosure mediation. Most lenders are difficult to negotiate initially and offer programs like full in repayment or re repayment plans instead. There are many mortgage resolution options like reinstatement, repayment, loan modification, refinance, partial claim, forbearance and pre foreclosure sale.

Know How To Stop Foreclosure

To stop foreclosure of your home, you have to know the technicalities of the foreclosure. If you have the basic knowledge of how to stop foreclosure, you will be safe from the lenders as they are not on your side. Even when the lenders know how to stop foreclosure they would not tell you the process. Hence it is always god to have the knowledge.

Mortgage Foreclosure Solutions

Managing your finances and security are in your own hands. It all depends on you of how to manage your home and the finances attached to it. Knowing all the fact, sometimes situation pushes you to land up in a mess where have to face dire consequences. One such area is the mortgaged loans that you have taken. Many of the Americans are facing mortgage foreclosure crisis due to the downfall of housing market.