Essential Information about Foreclosure
by Gerry Vandewall
Unfortunately, everyone runs into a time of life when money is tight and juggling finances is a serious challenge. For individuals owning a home, they could be in a position of having the home foreclosed for lack of payment. If you have found yourself in a compromising position but desperately want to do what you can to save your home, the good news is that avoiding a foreclosure is possible if you know how.
Foreclosure is what happens if you can no longer meet the payment schedule on your home loan. The lending institution repossesses your home and sells it to someone else. There are three options that you should know about. The first one is to try to keep it. The second is to sell it yourself; using the money to repay the loan and any extra fees you've accrued. The third option is to let the lender proceed with the foreclosure. It will then be your responsibility to pay any difference between the price they got and what you owe.
One thing to take very seriously is NEVER ignore a letter you receive from your mortgage holder. They will start sending them once you get behind in your house payments. Call the person who sent the letter and give them a detailed explanation of your circumstances. They certainly don't want to be burdened with your home, anymore than you want to lose it. It's hard work for them, costly, and not something they really want to take on. Most of the time they will be willing to work with you to find a solution.
If you are suddenly unemployed, have an increase in monthly expenses, or your salary has decreased, you may be eligible for a Special Forbearance. With this option the mortgage company lets you make lower payments, or even no payments for a certain period of time.
Another option is a Mortgage Modification. With this option, your mortgage is refinanced or the term of your loan extended. The way this program is designed, you have an opportunity to become caught up on payments. A Partial Claim is another possibility whereby your mortgage company would help you secure an interest free loan from HUD, which helps you bring your mortgage to a current payment status.
Remember, if you fall behind, rather than worry about foreclosure, talk to your mortgage company to see what programs you would qualify for so you can stay in your home. Never ignore the problem, because you likely have several viable options to fix your foreclosure problem.
Copyright 2006, Gerry Vandewall, All Rights Reserved. This article may be published on web sites or in newsletters provided this notice and the resource box is included without ammendment.
Gerry Vandewall is the owner and operator of Foreclosure OK, a web site that focuses on individuals who may be in a position of having their homes foreclose. For more information, visit: http://www.foreclosureok.com
Article Source: http://www.legalinfoarticles.com
