There are several alternatives that, depending on your current situation, may help avoid foreclosure. Options include:
Loan Modifications – In many cases, the mortgage servicer may be willing to modify the terms of the mortgage loan.
Repayment Plans/Forbearance – Repayment plans enable homeowners to pay a portion of past due mortgage payments along with the current payment each month, until the loan becomes current. Forbearance can postpone the repayment of past due or current mortgage payments until a predetermined date in the future.
Pre-Foreclosure Sales/Short Sales – In some cases, the best option for a homeowner may be to sell the home. However, selling at an optimal price takes time that a homeowner may not have. Short sales, if approved by the mortgage servicer, enable the home to be sold for a price less than the remaining balance on the mortgage note.
Banks DO NOT want your home. The average foreclosure costs a bank $50,000.00. In this tight credit market, banks can not afford to take back your home. The best option for you, and your lender, is to find a way to avoid foreclosure. Statistics show that the number of delinquent mortgage loan payments has grown steadily in the United States this year. Many people who stretched to buy the home of their dreams are finding it difficult to keep making monthly payments.
Have you fallen behind in your loan payments?