Avoiding Foreclosure

    you need foreclosure help, taking an active role early plays a major role in
    avoiding foreclosure. We’ll show you a few potential ways to stop foreclosure
    before it’s too late.

    Homeowners who have
    trouble making mortgage payments in a timely manner may be subject to seizure
    and the loss of title of their home. For these often well-intentioned
    individuals, unforeseen circumstances

    such as job insecurity
    or medical issues have them facing the unfathomable—home foreclosure.

    Regardless of the
    circumstances, it should and can often be avoided, with a little effort.

    If you’re unable to make
    your mortgage payment, it’s absolutely critical that you call your lender now,
    in order to stop foreclosure. Ignoring the bills will only make matters worse,
    increasing the likelihood that you’ll lose your home for sure. Borrowers who
    seek foreclosure help early are much more likely to work out a solution, no
    matter how dire their situation. Mortgage companies want to avoid foreclosure
    as much as you; they’re much more interested in the money they make off your
    interest, rather than the money they’ll lose on your home foreclosure. Based on
    your situation, your lender may be able to provide the foreclosure help that
    you need.

    Problems making your
    mortgage payment?

    Here are a few options
    for individuals who can’t make their mortgage payments or may have short-term financial
    problems and want to avoid foreclosure:


    A temporary agreement
    that delays payments for a short period of time. Mortgage lenders will only
    allow forbearance if you can prove you’ll eventually acquire funds. Some common
    examples would be a tax refund or a bonus where you can show future earnings
    that can bring your mortgage up-to-date.


    If you’re behind on your
    mortgage payments, a reinstatement can take place when you make a lump sum
    payment by a specified date, bringing your account back to current status.
    Lenders often combine reinstatement with forbearance.

    Repayment Plan

    If you’re behind on your
    payments, the mortgage company may give you a fixed amount of time to catch up,
    by combining a portion of your past due amounts with your regular payments,
    allowing you to get current.

    Loan Modification

    The terms of your loan
    can be adjusted. Changing the amortization table or lowering your interest rate
    can make a big difference, reducing your monthly payment amount to something
    you can afford.

    Federal Foreclosure Help

    In response to the
    recent mortgage crisis, the president has announced a refinancing program
    called FHASecure. This new product offered through the Federal Housing
    Administration (FHA) is estimated to help some 240,000 homeowners prevent
    foreclosure. This is rather notable, as the FHA’s previous policy would not
    allow for refinancing of borrowers in default. It does, however, come with
    restrictions; you must meet the following criteria to qualify:

    1)   You must
    have a history of on-time mortgage payments and a decent credit history to

    2)   Your
    interest rates must have or will reset between June 2005 and December 2009.

    3)   You must
    have 3 percent cash or equity in your home.

    4)   You must
    have a sustained history of employment.

    5)   You must
    have sufficient income to make your mortgage payments.

     The primary purpose of
    FHASecure is to provide help to the well-meaning borrowers who may have been
    lured into costly loans featuring teaser rates, and may be facing mortgage
    foreclosure. You can find more information on the FHASecure plan at http://www.fha.gov

    Severe Problems?

    A few options for
    individuals dealing with severe financial circumstances or can no longer afford
    their mortgage payments and want to stop home foreclosure:

    Short Sale

    A deal between the
    homeowner and lender to sell the property for less than it’s worth, with the mortgage
    lender taking the loss.

    Pre-foreclosure sale

    A pre foreclosure sale
    is an effective way of stopping foreclosure, allowing a default homeowner to satisfy
    his mortgage obligation by selling the property in question for an amount less
    than owed. You may qualify if:

    1)   The loan
    is at least 2 months delinquent,

    2)   You are
    able to sell your house within 3 to 5 months, based on what your lender agrees upon;

    3)   A new
    (lender obtained) appraisal meets HUD value requirements.

    Deed-in-lieu of

    This last resort allows
    you to “give back” your property to the lender. This will leave a
    mark on your credit record, but it will stop foreclosure, which is much more

    Credit Counseling

    A non-profit credit counseling agency may be able to help you prevent a real estate foreclosure. Be especially leery
    of fee-based groups approaching you with bank foreclosure solutions. They’ll
    often recommend (at a cost)
    what we’ve covered above, most of which you can do on your own or with the assistance
    of a HUD-approved counseling agency. You may find a HUD-approved housing
    counselor online
    or by calling (800) 569-4287 or TDD (800) 877-8339.

    Taking a pro-active
    approach to home foreclosure avoidance can’t be stressed enough. If you lose
    your home to foreclosure, the lender may come after you to recover money owed
    that may not have been recuperated in the property foreclosure sale.

    If you need more information on how to avoid
    foreclosure give us a call at (909) 278-7008

    Mainstreet Realtors® Corporate Office
    8577 Haven Ave
    Suite 101
    Rancho Cucamonga, CA 91730
    Phone: (888) 964-4070 | (909) 373-2200
    Fax: (909) 586-3920

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