How to Take Steps to Avoid Foreclosure (Part 1)

Take Steps to Avoid Foreclosure (Part 1)

Difficulty: Moderate

Instructions

1. 1. Forebearance - The lender may postpone any foreclosure action against you if you can repay the delinquent amount you owe within a short period of time.

2. 2. Forgive the payment - If you can convince the lender you experienced a temporary setback and you will not miss a payment again, you may be able to have the delinquency forgiven. They may waive the amount.

3. 3. Spread the payment over a longer time frame - Sometimes the lender will allow you to repay the delinquent amount over a longer period of time. The prefer to have the money sooner than later, but they also do not want to foreclose. For example, you may have a normal mortgage payment of $1500 per month. You may be four months behind. The lender may allow you to pay back the $6,000 plus interest over say five years by adding approximately $100 per month to your payment. You will now pay $1600 per month for five years and then $1500 per month after fives until the mortgage is paid.

Tips & Warnings

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• Every effort has been made to comply with federal, state and local laws regarding the material presented. We make no representations or guarantees that the material will work for your particular needs, and we disclaim any warranties, express, implied or for any particular purpose you may need. You understand that all material is provided for example only and that it is strongly advise that you seek legal counsel for advice to make certain it is applicable to your situation. It is also advised that you review the potential financial and tax implications of any actions with a qualified professional before proceeding.