Foreclosure Assistance Solutions
Foreclosure assistance solutions can aid in a person successfully keeping their house with little or no damage to their credit. Many credible companies exist offering this service, however some companies prey on disadvantaged people by promising foreclosure alternatives that sound too good to be true. Carefully budgeting money in order to promptly pay house payments is the simplest and most beneficial tactic available. Government programs create hope for situations such as job loss, death in the family, and disability.
Understanding how much house a person really can afford is the first step in avoiding threats of losing the house due to non-payment. If the house has already been purchased then exploring the possibility of refinancing or renegotiating payment may also be an option. Many programs are available aiding people in coming to grips about what kind of lifestyle they really can afford. These equations include percentages of income designated to certain areas of a budget. Understanding exactly how much money is available to actually spend each month is usually a shock to most people. Some foreclosure alternatives include selling big-ticket items such as jewelry and cars to make payments. Though this money may only cover a couple of payments, the act itself may open the way for other frugal changes in lifestyle.
Most mortgage lenders have set rules about how long a person can miss payments before getting threatened with foreclosure. Likewise they have guidelines outlining the ways a person can stall the foreclosure process. Foreclosure assistance solutions that are ethical include non-profit organizations that help a person determine a realistic budget to pay down debt while still surviving normal life expenses such as food and gas in the car to get to work. Any organization asking for money outright is probably a scam or company with alternative motive such as debt elimination, which may scar a persons credit for up to 10 years. Debt elimination can be just as harmful to credit scores as foreclosure itself. Valid foreclosure alternatives include lowering interest rates, changing payment amount, and refinancing to get the extra cash.
The threat of losing a house is more serious than losing any other possession due to the link to self-concept which may further impair all other areas of finance and life in general. Foreclosure assistance solutions can offer a break even if a valid reason according to the mortgage company is not applicable. This is a second chance and should not be used hastily, however the damage created by foreclosure can eliminate the possibility of a second chance. Keeping communication lines open with the mortgage company will create the opportunity for second chance, avoiding them and ignoring letters will not. Even if the answer is there is no money they want respect for lending the money. And he bought a parcel of a field, where he had spread his tent, at the hand of the children of Hamor, Shechem's father, for an hundred pieces of money. (Genesis 13:19)
Even with careful budgeting, circumstances of life happen without any warning. This may include death in the immediate family causing a person to experience depression or simply need to take more than expected time away from work, which leads to unexpected time away from work or even the loss of a job. Foreclosure assistance solutions can create a cushion by allowing the homeowner to go a specific period of time without making a payment. This time period should not be abused due to the unforeseen future need for the same services. Even though life circumstances cannot usually be predicted they can be planned for. This includes setting up a savings account for emergencies such as getting laid off or unforeseen time taken off of work. High interest rates may tempt people to make higher payments each month in order to pay down the principle, however planning for emergencies should occur first.
If at any time a financial counselor decides that it is in a persons best interest to sell or significant income loss is endured then selling the house and buying a smaller one may be the best move financially. Though people develop emotional attachment to houses, the best thing may be to make a new start somewhere else. Focusing on the overall financial health of the homeowner may lead to a better self-image therefore creating a more positive experience in the next home. Evaluating all of a persons belongings and determining the value both sentimental and monetarily will aid in choosing what items can be sold in order to create a down payment.
Talking with friends and family to formulate a plan to ensure housing safety may be an option if responsibility is practiced in regards to home maintenance and finances. If a family member loses a job or experiences some other type of trauma both emotional and financial it is the familys duty to consider helping in any way possible. Close friends may be an option too. If the house is large enough, then renting a room to a friend or co-worker creates foreclosure alternatives. Contractual agreements, even for the short term, are crucial in the complete success of the situation. Even if the tenant is a sibling, contracts aid in dividing the relationship of family and business. Likewise, fairness and actually monetary benefit in this situation should be considered in order to succeed in this method of foreclosure assistance solutions. Exploring all options before making decisions concerning how to save ownership of the house should be considered before any action is taken, however consistent communication with the lender is necessary immediately.
Foreclosure Prevention ServicesForeclosure prevention services are available that will examine a financial situation and stop mortgage foreclosure. This list of services includes specialized agencies, lawyers, financial consultants and planners, investors, lenders and realtors to name a few. These professionals employ many measures including but not limited to short sales, loss mitigation, refinancing or creative financing, "workout agreements", and as a last resort, bankruptcy. As always, be careful of scam artists who promise the world, ask for a few hundred to a thousand dollars, and then never come through. When the feeling of urgency becomes overwhelming, a homeowner should strive to find a valid agency or service that does not prey on the financially beset.
Primarily foreclosure prevention services help a homeowner negotiate with a lender. A lender does not want the house. Specifically, a lender wants the money that was not paid over a period of time, as well as the fees for late payment that will bring the loan current. By law, bringing the loan up to date in this manner will stop mortgage foreclosure immediately. Negotiation professionals who can help in this manner are found on the Internet or in the phone book and will fight a foreclosure by taking the burden of negotiation off the homeowner while the homeowner seeks out funds to bring the mortgage up to date.
A realtor is one of many types of foreclosure prevention services. If time is of the essence and the market is favorable, listing with a realtor and moving is an option. A realtor will bring buyers quicker than trying to sell by owner. The realtor understands the market and can expedite all of the paperwork. Sometimes a realtor can find an investor in the area who can buy a home with cash for the balance of the loan and immediately stop the foreclosure. A realtor can also direct a short sale where a lender has agreed to accept a lesser amount than what is owed and forgive the rest of the loan. The path to take with a realtor all depends on the market and the equity in the house. However, if a home has enough equity, it may be more feasible, if the situation permits, to find a new lender to refinance or refinance with the old one.
Mortgage lenders may be able to provide refinancing to stop mortgage foreclosure. If a home has enough equity, all of the fees and back payments may be tacked into a new loan that will cover the previous lender's needs. The old lender may be willing to do this as well if a homeowner can provide proof that resources are available to refinance and into the future so as not to fall into the current situation once more. In other words, this is only a valid option if the loan to value ratio works out and if the homeowner can afford the new payments over the life of the loan. If a homeowner cannot meet these requirements, other foreclosure prevention services may need to be sought out. A homeowner must not be hasty and take on a loan with terms that will put them back into the situation that caused foreclosure in the first place.
Two foreclosure prevention services lawyers provide are negotiation and bankruptcy. A lawyer can either lead a client through bankruptcy, which immediately stops foreclosure, or review and negotiate loan, possibly creating a "workout agreement". "Workout agreements" negotiate a period of time to acquire the money to bring the loan current or find a buyer. "Workout agreements" are preferred alternatives to bankruptcy as the latter requires at least three months of financial counseling prior to filing which may not be practical, not to mention the consequent damage to a credit rating. Lawyers, however, are expensive and a cheaper alternative may be a service specifically set up to stop mortgage foreclosure. Financial planners typically have a network of mortgage lenders and realtors who can provide any of the options mentioned above, all tied into a tidy helpful package. Such concentrated wisdom may be just the ticket. "He that getteth wisdom loveth his own soul: he that keepeth understanding shall find good." (Proverbs 19:8)
Mortgage prevention services provided by financial consultants can be found on the Internet or in the phone book. These consultants will look at an entire financial portfolio and determine a good course of action to create a brighter financial future overall. Many of these consultants will be able to give advice to a homeowner in a free initial consultation. Some of these specialty services are completely free on the Internet; they receive payment through kickbacks from the companies who they set the homeowner up with in order to save their home or their credit rating. One way or another, these services are in abundance on the Internet free or for a fee. Just be certain that they have a favorable rating with a consumer protection agency. Once set up with good prevention service, the pressures to stop mortgage foreclosure will ease and the path to an enlightened financial future will begin to emerge.