Slowing or Stopping Foreclosure

There are ways to avoid the devastation of a foreclosure.

Being faced with a foreclosure does not mean the end of the world. You do have options that you’ll need to consider before having to lose your home on the courthouse steps.

Again, the goal of both you and the lender is for you to keep your home and the lender to continue to receive their payments. There are several options that your lender may offer you if you miss a payment and want to avoid foreclosure.

• Repayment Plan: 
  If you suffer a temporary short-term financial setback, your lender may allow you to pay off your past due amounts in several installments over several months.

• Loan Modification:
  As mentioned above the lender does not want your home. In many cases, they can adjust the terms of your loan - most often by lengthening out the amortization schedule of your loan, lowering the interest rate or rolling the deficiency into your loan and reamortizing the new balance, all in an effort to bring your loan current.

• Forbearance Plan:
  The borrower is allowed to suspend all or part of a monthly payment for a specified time period based on Bank agreement. The missed payments may be rolled into the existing balance, or become part of a Repayment Plan or Modification.

• Short Sale:
  If the value of your property has dropped and the loan balance exceeds the value of your home, the lender may allow you to sell your home for less than the outstanding loan amount, takes the proceeds and forgive you of any remaining debt.

• Short Refinance:
  Allows the forgiveness of a certain amount of the principal balance in conjunction with Forbearance and a Repayment Plan.

• Bankruptcy:
   A borrower’s loan may be changed from the original terms based on a
   Loan Modification as part of a court-approved reorganization plan.

• Obtain A "Private Money Mortgage":
  While the rates and fees for this type of loan may be high, a loan from a private lender may allow you to buy time to sell your home in an orderly fashion and avoid default or foreclosure.