If you’re unable to stay current with your mortgage payments, then you’ll soon get calls from your lenders. If you ignore them and remain delinquent with your payments, then you’ll find yourself on the streets at an alarming speed. Thus, it is advisable that you must look for some other way such as mortgage refinancing, modification of home loan and many more to stop your home from getting foreclosed
3 Tips to stop foreclosure

Read on to know how you’ll be able to prevent your home from getting foreclosed.

Talk to your lenders:
If you’re unable to manage your finance properly and facing trouble to make minimum payments on your home loan, then you must talk to your lenders. If you don’t discuss with them about your financial hardships, then you’ll make a big mistake. You must contact your lender soon so that, he will assess your financial situation and will offer you a payment plan to help you repay your home loan. A lender will always help you repay your debts as the process of foreclosure will demand a lot of expense which a lender won’t be willing to afford.
Modify your mortgage:

You can even ask your mortgage lender to modify your home loan so that, you’re able to stay current with your monthly payments. In a home loan modification either your payment period will be stretched or the interest rate on your loan will be reduced. This will make your monthly payments affordable.
Refinance your mortgage:

You can even opt for this option as an alternative to foreclosure. Since the process of foreclosure will take certain days to get completed, you can utilize that time to bring your finance on track. Try to find out a lender who will allow you to take out a refinance loan at a low rate of interest. Utilize that loan amount to repay your exsiting mortgage in a lumpsum. Now, you have to make only one monthly payment to repay your refinace loan.
Lastly, if you find that mortage refinance cannot help you stop your home from getting foreclosed, then you can ask your lender whether or not, you can opt for a short sale of your house. If the lender allows you, then you can look for a buyer and sell you home. But you must know the fact that you can apply for a short sale of your home only when you’ll find that the amount you owe is more that the price of your home. In such a situation the remaining home loan which will be left to be paid will be forgiven.

Getting a loan is a practical step to purchase what you want. However, it is not very easy to get one. You need to have all the qualification requirements in order for you to avail of the loan that you want. There are several mortgage products and your purchase will depend on your needs and other requirements. Mortgage loans are of different types. You need to figure out the loan that would suit your preferences.

Types of Mortgage Loans

This is a good type of mortgage. It is free and allows you to think and decide first before you get to sign a contract. This type arranges the most competitive rates for you and they would choose the longest rate guarantee period. If for example, the rate increases, you will not be affected, but if the rate decreases, the decreased rate will be offered to you.

This is another good type of mortgage. It does not go beyond 75% of the selling price of the property. However, you need to be qualified to avail of this mortgage. Conventional mortgage rates do not change during the entire term of the loan, so if the price increases during the entire term of your loan, you will not be affected.

One of the requirements for you to avail of this mortgage is to have at least a 720 credit score. Having a 580 credit score home loan might be a problem unless you find a good broker to help you with your problem.

This type of mortgage is amortized. You get to choose on how long you want to pay your purchase. Usually it has a 10-year, 15-year, 30-year, 40-year and 50-year fixed rate mortgage. It would all depend on you on how long you want to pay your dues.

The government insures this. This type of mortgage is best for the first timers. People who purchase a house the first time have minimal down payment requirements.

Quite often Borrowers ask the question should I file for chapter 7 Bankruptcy Services or proceed with a Short Sale?

Depending on your situation you may want to do both. If your intention is to keep your property and you can afford your Mortgage a Short Sale is not the Solution for you. In most cases Borrowers who file Bankruptcy find it is beneficial in conjunction with a Short Sale.

How can filing a Chapter 7 Bankruptcy help me?

A Chapter 7 Bankruptcy is an often underutilized strategy beneficial if a Borrower has a Foreclosure sale date scheduled on their property or if a Borrower has many debts that they are unable to continue to make monthly payments for. A Bankruptcy will halt a property from going to Foreclosure anywhere from 30-90 days or longer.

So what is discharging a debt and what does it mean?

Discharging a debt means that the debt is no longer enforceable against the Debtor personally

Below are some of common types of debts that are not discharged:

- Debts for most taxes

- Debts incurred to pay non-dischargeable taxes

- Debts that are domestic support obligations

- Debts for most student loans

- Debts for most fines, penalties, forfeitures, or criminal restitution obligations

- Debts for personal injuries, or death caused by the debtors operations of motor vehicle, vessel or aircraft while intoxicated

- Some Debts that were not properly listed by the debtor

- Debts owed to certain Pension, Profit Sharing, Stock Bonuses or other retirement plans

- Debts for Thrift savings plan

So which Debts are dischargeable?

- Debts that are typically loans on a house

Important Note: For Borrowers whom are in Foreclosure, Bankruptcy is usually not the sole answer as the Borrower must qualify for the Bankruptcy. This means a work out must be made with the Bankruptcy court as well as the Bankruptcy trustee a monthly payment typically 1 and ½ times the amount of the Borrowers monthly Mortgage payment is required to proceed with the Bankruptcy.

When a Borrower is forgiven for the Debt, meaning the Bankruptcy is discharged. The Lender will then continue the Foreclosure process, affecting the Borrowers credit report, credit score , as well as possibly employment status.

A Short Sale once completed will show as a “Satisfied Debt” on a Debtors Credit Report.

For more information about Bankruptcy, Short Sales and other options to Stop Foreclosure now as well as to receive a FREE 9 part Foreclosure video series go to www.FastForeclosureSolutions.com

*Disclaimer* This information is not intended to be legal advice. Please consult with a local Attorney such as Timothy Owens of The Owens Law Firm for Bankruptcy or other legal advice.

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