Cash is King – Upside Down Mortgage Solutions

April 1, 2008

Forclosure: The Process and ways to avoid it!

In the past months, you may have had encountered the term “foreclosure” a dozen of times especially with the current crisis in the national housing market. If you are lucky enough not to have any problems with your mortgage payments, you should still try to understand how foreclosure works – just in case.

Foreclosures

For starters, foreclosure is the repossession of a property by a mortgage lender because the owner failed to fulfill his mortgage payment obligations. Reasons for not being able to pay monthly mortgage dues can include the following:

  • Losing a job
  • Suffering from serious health problems
  • Divorce
  • Death in the Family
  • Mismanaged budget **** (Lets not forget Bad Mortgage Choices)

Depending on the state, a homeowner can try to stop the lender from foreclosing by doing any of the following:

  • Refinance loan with Lender
  • Re-instatement of mortgage loan
  • Ask for forbearance
  • Sell property to recover equity
  • Short Sale
  • Deed in Lieu of Foreclosure
  • Take out Foreclosure Loans
  • File for Bankruptcy

As you can see, there are many ways that an owner can avoid foreclosure. All it will take is extra effort to negotiate with the lenders. Of course, it will also depend on what stage of foreclosure the owner is in. Basically, there are three stages: pre-foreclosure, foreclosure at auction and bank foreclosure.

You must remember that you will still have a fighting chance of stopping foreclosure up to the last stage. Many home owners do not know their rights and simply give up when they receive a Notice of Default from their lenders. To make matters worse, they refuse to establish communication with their lenders.

When facing foreclosure, owners should be able to comprehend their situation and make decisions realistically. Having a foreclosure record on your credit history is not something anyone would want and so, owners must fight with all their might to avoid foreclosure.

 

Article Thanks to www.Eforeclosuremagazine.com 

 

Remember when you face foreclosure, you have options and you need to explore them.  Ask me for advise as I am glad to help. brent@brentlane.net

 

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3 Comments »

  1. For the people who is in foreclosure right now, I would tell them to consider any of the options you gave them and to take action!!!!!

    Sadly, a lot of people go into foreclosure because they stayed in a “state of denial” during the whole time…hoping and praying for a solution that never came.

    Foreclosure is really an embarrasing situation for many people but guess what…If you are in foreclosure right now…you are not along.

    Thank for this great post.

    Jerry

    Comment by Jerry Larach — April 8, 2008 @ 12:35 am | Reply

  2. This is the information that people need right now! i am shocked that more people don’t know about it.

    Comment by Roman — April 14, 2008 @ 2:27 pm | Reply

  3. Roman,

    Thanks for the comments as I believe that if I keep posting this type of information that people will see that they need to take action when faced with this type of situation. Most don’t do anything.

    Brent

    Comment by brentlane — April 14, 2008 @ 4:11 pm | Reply


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