Preventing Foreclosure Proceedings and understanding your options

by Mark Lambie

Every year over 8 million homeowners are seeking help
preventing foreclosure proceedings. This is a stunning 30 year
high. Experts project that by 2006, 12 million homeowners will
be teetering on the brink of foreclosure. Many homeowners are
not aware that the can prevent foreclosure and save their house.
Did you know that you can’t stop the proceedings up to an hour
before the auction takes place?

As a homeowner facing foreclosure there are various options
available. We will briefly examine some of the most popular
options.

Reinstate the loan – Ideally you would like to be able to pay
the loan payments that you are behind on and bring the loan
current. These costs would include whatever owed on the missed
payments, and any additional late charges or attorney fees. This
is the most efficient way when preventing foreclosure
proceedings.

Get forbearance – When a lender forecloses on a property it is
expensive for them. They would rather work out some sort of
arrangement than proceed with the foreclosure. Talk to your
lender and see if they are willing to work out a plan that
outlines a way to get current on your mortgage. This agreement
will vary depending on the situation and the lender. Some things
they may be able to help with are a temporary reduction or
suspension of your payments. If you have a FHA VA or other
government loans you may qualify for even more options.

File for Bankruptcy - Some attorneys may advise a homeowner to
file for bankruptcy. This is a legal way to avoid the
foreclosure process. However the process may still continue and
you will be stuck with bad credit for 7 years. You should
consult your attorney about the option of bankruptcy.

Sell your home – The problem with selling the home is that if
you list it with and agent, and it still is not sold the lenders
does not care, you are still on the foreclosure clock. The best
way to go about selling the home in this situation is to contact
a real estate agent that is familiar with foreclosure investing.
They may be able to put you in contact with investors that will
be happy to but your home. Preventing foreclosure proceedings
can be as easy as getting in contact with a foreclosure
investor.

Deed in lieu if foreclosure – This is when you would voluntarily
give the house back to the lender. The lender is not obligated
to accept it. You should discuss with the lender how they will
report it back to the proper agencies. Should the lender choose
to refuse the deed they are required to file a Notice of non
acceptance with the county recorder.

Nothing – We mention this because many homeowners will ignore
the lender and do nothing. Don’t fall into this trap. You have
options when in foreclosure, you just need to talk to someone
and find out what the best options for your situation are. Visit
www.foreclosure-helper.com for a free no obligation consultation
of your situation. One of our experienced foreclosure
specialists will contact you with a personalized situation
analysis.

About the author:
Mark Lambie is the owner and operator of Stop Home
Foreclosure a website dedicated to helping homeowners facing
foreclosure. We provide a wealth of information on the whole foreclosure process.