Foreclosure Prevention Help
The foreclosure process brings an avalanche of financial and legal woes. If you are in risk of foreclosure on your home, take advantage of resources that can help you avoid the foreclosure process. Avoid entities that promise to provide assistance for pay. Legitimate foreclosure prevention help is available at no cost.
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Advocacy Organizations
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Aa host of national and local advocacy organizations can help homeowners prevent foreclosure. You can meet with a counselor to determine the best course of action for your situation. For example, the Neighborhood Assistance Corporation of America (NACA) provides several long terms options to help you keep your property. The organization negotiates with your lender to make aggressive changes to your interest rate and/or monthly mortgage payments. In most programs, the homeowner must be able to demonstrate the ability to make a long-term commitment to new mortgage terms.
Forbearance
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Contact your lender to determine whether you are eligible for a forbearance. A forbearance is a temporary suspension or dramatic reduction in your mortgage payments. At the end of the forbearance period, you are generally required to make larger payments to make up for the payments missed during the forbearance period. "Forbearance may be an option if your income is reduced temporarily (for example, you are on disability leave from a job, and you expect to go back to your full time position shortly)," according to the Federal Trade Commission.
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Investor Purchase
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If you are in a home you cannot afford or have no source of income, consider selling your home to an investor. Reputable home investors, such as We Buy Ugly Houses, may be willing to purchase your home at a discount. This is a viable option for homeowners in foreclosure who are not upside down in their mortgages. Being upside down in your mortgage means the fair market value of your home is less than the mortgage amount. You can also find investors at a local Real Estate Investors Association meeting.
Making Home Affordable
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As of February 2009, homeowners can take advantage of multiple options presented by the U.S. government to prevent foreclosure. The Making Home Affordable program provides qualifying homeowners with the option of loan modification or refinancing. To qualify for a refinance through the Making Home Affordable program, you must be current on your mortgage. A current mortgage means you have not had a late payment in the last 12 months. Refinancing is beneficial when you obtained your current mortgage at a high interest rate and now want to take advantage of a lower interest rate. Loan modification can be helpful if you are several months behind on your mortgage and need the option of adding the past due balance onto your principal to bring your account current.
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