Foreclosure and Short Sales News

There are many reasons that foreclosures are way out of control and none of them have a quick fix. Lenders and the government are scrambling to find various ways to prevent foreclosures from getting worse. New government laws have prevented many loss mitigation companies from helping home owners, which caused those companies to go out of business.

There are only a few real foreclosure assistance companies who do the actual loss mitigation. The others are often spin-offs of larger companies. They find the home owners in trouble and outsource the actual mitigating to one of the other companies. They are in essence, front-end sales forces.

When contacting or being contacted by a foreclosure prevention company, one of the questions you need to ask is if they outsource the cases to another company, or mitigate the cases in-house. This is important because you need to know with whom you are dealing and their background.

Any time you deal with a third party to help mitigate your mortgage, there will be a fee associated with that service. If there is no fee, then they are not mitigating for you; They are helping you complete the proper paperwork that your lender requires to decide what to do with your case. Many non-profit organizations operate this way.

When looking for foreclosure assistance, you want to make sure you choose the right solution for your personal needs. Before agreeing to let someone else negotiate with your lender for you, there are some things that you should do yourself.

1.  As soon as you know that you will miss a mortgage payment, call your lender. This way you can find out where you stand and what options they have available for you. Be honest with your lender, but keep in mind your priority is saving your home. The sooner you contact them, the more likely they can help you. The more payments you miss before contacting your lender, the tougher it will be to resolve your situation.

2. Refinancing your loan is a good idea if you have not waited too long. If your adjustable rate mortgage has increased drastically, refinancing should be your first consideration. Lowering your interest rate will save you a lot of money and will help you avoid foreclosure. Refinancing is usually only available when you have missed less than 3 payments and still have decent credit.

3. Ask your lender about a Forbearance on your loan. Forbearance can help reduce your mortgage payments or even delay them for a negotiated time period without any legal action. This is a good option for someone that has had a job loss or extreme financial problems. Explain your situation to your lender and ask for a Special Forbearance.

4. Some lenders will offer you a repayment plan in which part of your past due amount is added to your monthly payment each month until you are caught up. This is a good solution if you just fell behind on your bills due to a temporary hardship and can keep up with the new current payments.

5. Selling your home may be a good option for you if you are still in the pre-foreclosure stages. Since it takes time to sell your home, the quicker you get it on the market, the better your chances of selling it will be. Selling your home is a sure way to avoid foreclosure.

6. There are an increasing number of companies who will do a short sale on your home. A short sale will let you sell your home for less than what is due on the mortgage. Your lender will have to approve the short sale and once they do, your foreclosure is stopped. Remember that you will have to move once the short sale is completed, because the new owners will move in. You can have 2 to 6 months during the short sale process in which you will save your money to move into another home. Learn more about this option at Short Sale Holdings

7. Deed in Lieu is a final option you can explore. With a  Deed in Lieu, you convey all interest in your property to the lender to satisfy your debt and avoid foreclosure.  A Deed in Lieu can hurt your credit, which has already been damaged with the missed mortgage payments, so find professional help before choosing this option.

There are two important things that you need to keep in mind when looking for help preventing foreclosure.

• First, research any companies you plan on getting involved with to make sure they are legitimate and you are not getting involved in a foreclosure assistance scam. Some ruthless people will take advantage of others in there time of need. If you have any bad feelings about the person or company, move on to someone else.
• There are plenty of assistance programs available through public and government resources. Decide if you want to keep your home or move. Then choose the program to help you do just that. If you want to stay in your home, look for a company whose first priority is to save your home. Some “foreclosure assistance” programs are only looking to buy houses cheap.

Make sure you explore all possible options before it is too late. Help is available to prevent foreclosure on your home. It is up to you to take advantage of those options before your home goes to a sheriff sale.

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