Most of us run into money problems at some point in our lives, and have to try some creative financing. If you own your home, and are in a tough situation, you may be at risk for losing your house through foreclosure. If you find yourself in this kind of trouble, the good news is, there are some ways to hold onto your home.
Foreclosure is a serious situation that means your lender can take your house and resell it if you start missing payments. Fortunately, you usually have some alternatives to consider. First, you can try to find a way to keep it. Second, you can put the house on the market yourself, and use the proceeds to pay off your loan and any additional charges youíve incurred. Third, you can go through foreclosure. If you do this however, it will be up to you to pay any balance due once the loan is paid off.
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 donít want to be burdened with your home, anymore than you want to lose it. Itís 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.
A Special Forbearance involves the mortgage company providing you with a temporary reduction or even a suspension of your monthly mortgage payments. If you have recently lost your job, had a reduction in income, or your living expenses have increased unrepentantly, this option may be ideal.
You might also consider a Mortgage Modification. In this case you would refinance your home or extend the time at which the loan is due to be paid off. This option will help you catch up in making your payments. A Partial Claim is designed to help you get a non-interest bearing loan through the Department of Housing and Urban Development (HUD). Your mortgage company would help you with this, and if successful, your loan will become current.
If you ever do face the possibility of foreclosure, before you completely stress out, talk to your lender immediately to explore options. There well may be programs that you qualify for. Ignoring the problem wonít make it disappear.
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.
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Gerry Vandewall runs the Foreclosure OK, web site that focuses on a range of resources about foreclosure issues. For more details, go over to: www.foreclosureok.com
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