Do Nothing - The stress of facing foreclosure can push many folks into burying their head. Doing nothing may not be the best choice, instead research your options, or find a source that can help you and provide solid direction. One of the options may be doing a best loan modification to save your home. There are many options, so investigate the right one for you.
File Bankruptcy – There are new bankruptcy laws sitting in Congress to be voted on that would help the homeowner when it comes to principal balance reduction. These news laws have not been passed, but keep checking back to see if and when they are passed.
Currently, filing for bankruptcy may not relieve you of your obligation to repay your mortgage, the foreclosure may still proceed, and of course there is the negative impact to credit.
Short Sale - A short sale typically is executed to prevent a home foreclosure. It means that you are selling your home for less then what you owe on it. The impact to your credit is less severe then that of a foreclosure showing up on your credit.
Often a bank will choose to allow a short sale if they believe it will result in a smaller financial loss than foreclosing. The downside to a short sale is that it takes time to sell a home even at a bargain in this housing market, but it will also depend on your location. Keep in mind that the short sale process with the bank can be lengthy and usually takes 60 days or more for the bank to accept the short sale offer. Also, when the home is listed for sale, you are still responsible for your mortgage payment.
Loan Modification – A attorney loan modification an option that can save your home while putting you in a [mortgage|home loan|home payment|mortgage payment[/spin] you can afford. So how does a Loan Workout work and who is eligible for a Loan Modification? Below are some helpful tools and resources for you.
The most common Loan Workout are 'fixing' adjustable interest rates. A Loan Workout can help homeowners who can’t refinance or afford their current mortgage payments. Getting an approved loan modification for troubled home loans can help stop the foreclosure process.
Be very leery if your bank sends you a letter in the mail stating they will accept partial payments for three months and then after that period they tell you they MAY offer you a Loan Modification. This may be a scam by the bank just to collect money to help them. However, this does not help you in that the notice of default clock is still ticking. If the lender is not going to put you directly into a Loan Modification, call a professional for help immediately. Don’t get caught in their scam as they DO NOT promise the Loan Workout at the end of the three month period. Too many people have lost their homes because the banks did not put them into the Loan Modification after the three month period and started the notice of trustee sale shortly after that period.
We can offer free foreclosure help to homeowners that want to keep their home. Please use our short form to receive a free foreclosure assistance consultation. Our consultation is FREE. http://www.callalms.com