For one to save his home from foreclosure, it is very good to be proactive.This is mostly applicable to home owners who are struggling in danger of falling behind in their mortgage payment.
The fact is that the mortgage lenders are never interested in having your home and due to this, they are likely to work with you so that you remain in your house.Therefore, it is you who have to be active and get organized by understanding the foreclosure process and knowing the available options you can take.
This may give you a better chance of avoiding losing your home. For most people whom no realtor was able to help them sell their property faster , companies that pay in cash upfront will be of great help.
The following are some of the steps that one can take to avoid foreclosure;
You should gather loan documents and set up case files
It is advisable for one to make up a file having the records that are relating to his home and file up the important documents.The documents must include the documents for the loan like the mortgage or the need of trust and also the promissory note.In addition to this, you are supposed to also include your monthly mortgage statements, insurance information.
The property tax information, copies of any letter you sent to your mortgage servicer and their correspondence and also the record of statement that you have made.
You should learn about your mortgage right
After having your documents down, you need to take time to go through them so that you know what will happen if you do not pay the mortgage payments.
This information can be found within the mortgage and the promissory note.Within these documents, you can find the information such as whether you can reinstate the loan by catching up on the past due amount, the late charge amount per month and also other charges you can be charged by the lender if you fall behind in payments.
You should know your options
The following are some of the permanent and temporary options that can help you save your house from foreclosure.
The loan modification-it is one of the permanent change you can have on your mortgage which involves the options of either extending the loan payment duration or reducing the interest rate.With it, the servicer can mostly add any other past-due amounts to the balance of your mortgage.
In accordance to your circumstance, you may be given the government’s Home Affordable Modification Program(HAMP) or the proprietary loan modification.
Forbearance agreements and repayment plans-you can only be qualified for this agreement plan in case your reason for not able to pay the loan is temporary.By forbearance agreement, your servicer may agree to reduce or suspend your mortgage payment for a given period.When the end of forbearance period comes, you must bring the loan current by either paying back the missed or the reduced payments in full or by using a repayment program.
Refinancing the loan-in case you are not yet late in payments, you may manage to refinance your loans as part of the government’s Home Affordable Refinance Program(HARP) hence can help you to lower your monthly payment amount.