The last thing anyone wants to loose is your house. Unfortunately even though we know this fact, sometimes we tend to take our mortgage payments for granted and end up loosing our homes. When a borrower fails to pay his or her mortgage for a number of payments (usually 5 or 6) the lender will issue a foreclosure by selling the house or repossessing it.
Sadly, more often than not banks often lead the homeowners to believe that they don't have other options available. However there are other alternatives that homeowners can use to keep their house.
These are some of the options that homeowners can use.
Short stop
You can get a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.
Negotiate a payment plan
The homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan.
Change the plan
In some cases a temporary change in the terms of the loan can be given when properly negotiated. These changes include but are not limited to, amortization extension and reduction of interest rate.
Third party sale
The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt.
Friendly third party sale
The third party who buys the property sells it on foreclosure to clean the deed of other holders. Then, in turn the property is sold back to the borrower.
The above mentioned are just a few ideas of what you can do to keep your home if faced with foreclosure. Do not be afraid to ask for help. Be forward and upfront with your lender if you have fallen on hard times. If you have to take a second job to earn extra money then do it. It is far easier to work to stay out of foreclosure then to try and fix it once you have gotten a notice.
Sadly, more often than not banks often lead the homeowners to believe that they don't have other options available. However there are other alternatives that homeowners can use to keep their house.
These are some of the options that homeowners can use.
Short stop
You can get a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.
Negotiate a payment plan
The homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan.
Change the plan
In some cases a temporary change in the terms of the loan can be given when properly negotiated. These changes include but are not limited to, amortization extension and reduction of interest rate.
Third party sale
The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt.
Friendly third party sale
The third party who buys the property sells it on foreclosure to clean the deed of other holders. Then, in turn the property is sold back to the borrower.
The above mentioned are just a few ideas of what you can do to keep your home if faced with foreclosure. Do not be afraid to ask for help. Be forward and upfront with your lender if you have fallen on hard times. If you have to take a second job to earn extra money then do it. It is far easier to work to stay out of foreclosure then to try and fix it once you have gotten a notice.
About the Author:
Doc Schmyz has done real estate deals all over the US. His website shares Real estate investing information for all over the US. Find Real estate investing information by state
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