Can I Stop a Foreclosure?
January 30, 2009
Remember when you first found your home, how happy you were? It was just what you wanted. Unbelievable, you thought. You didn’t need a downpayment and the payments were affordable. All you needed to do was sign on the dotted line and the house was yours. You weren’t alone in falling for this fairy tale. We all know now that many people were taken in by the sub-prime mortagage scam.
The reason these mortgages were so cheap is because they were designed for people with not so great credit. They were designed for people who otherwise would never have been able to afford a home under normal circumstances. What these people, and likely you, were not told is that the interest rate would jump at a later date.
That means that the payments have become too much for you and you now find you need to work to stop the foreclosure. These are bad business practices and far too many people fell for them as they chased the American dream. If you’re stuck in a situation like this and facing foreclosure, it’s time to consider ways to stop it.
Call you Lender
Foreclosing means that your lender (probably the bank) is taking back the loan which it secured with the house you live in. What this means is that if you don’t make your payments, the lender can take the house away from you and resell it, usually at a lot less than what the house is worth. What they want is someone in the house and paying a mortgage. An empty house is of no value at all to them. It actually is more expensive for the lender or the bank to foreclose on a house than it would to keep someone in the house paying a mortgage. Knowing this, you can contact your lender. Ask if you can renegotiate your loan, work out a new payment plan or find another option that will allow you to keep your home. You may be able to find a solution and stop the foreclosure and keep your house.
Ask for Help
Since the foreclosure rate is so high, it may be time to ask for assistance to help stop the foreclosure. Churches and other charity groups will help you with payments until you get back on your feet. Whether the threat of foreclosure is the result of a lost job or shady business practices, you can ask for help from these organizations until you come up with the money to make your mortgage payments. This can stop foreclosure temporarily but it’s no easy fix. You still must come up with the money to pay the mortgage, whether this means getting a second job or securing some kind of supplementary income.
HowToStopHomeForeclosure.net