Home Foreclosure Information
Anyone who is seeking home foreclosure information just might be facing one of the most difficult financial loses that they have ever experienced. The reasons that a property might be foreclosed upon can vary, but few homeowners expect to face such a dilemma when they are purchasing a home. Any number of circumstances can cause individuals to see their homes face repossession. If a homeowner becomes ill and is no longer able to work, this can result in a default on monthly mortgage payments. An unexpected job loss can also lead to default. Tragedies such as the loss of a family member might mean that surviving members of the family struggle to make ends meet. At times such as these, dependable home foreclosure information is a very valuable commodity. One major mistake that homeowners who find themselves facing such a dilemma might make is that of failing to reach out for help. There are many services that can help these homeowners work with the lender in question to explore any possible solutions to the situation. Unfortunately, many individuals will hide an impending home repossession out of embarrassment or shame. Of course, such proceedings will not stay hidden, but will become a matter of public record. Admitting the problem and reaching out for help can sometimes make the difference between loosing a home and keeping it.
Attaining and responding to home foreclosure information is vital in these cases. When homeowners wait too long to acknowledge a notice of foreclosure, they may be forfeiting the chance to turn the situation around. Even in the event of a notice of repossession, all is not lost. There are steps that a homeowner can take. Some lenders will allow borrowers to work out a deal beyond just the original lending terms that were established when the loan was signed. These solutions could come in the form of the short pay or the short refinance. This basically means that the lender will agree to a new loan that covers the debt incurred in the old loan and any additional fees. A short pay will often involve the help of a third party such as a relative or friend who steps in to act as a co signer or to help pay off the loan. A borrower might also be able to modify their mortgage if the lender agrees to make changes in the original loan terms. These changes can be temporary or they can be permanent, but are generally a temporary fix. Lowered interest rates, changing the monthly payment so that less money is paid down on the principal, or extending the life of the loan could be ways that this option can work. Professional negotiators in this field can help individuals gain important home foreclosure information and perhaps turn the situation around.
When gathering home foreclosure information, a wise homeowner will try to understand all of their options. Offering deed in lieu of foreclosure basically means that the property goes back to the lender and the lender forgives the debt that is owed by the borrower. A professional negotiator should be brought in to work in behalf of the homeowner. Even after this option takes place, there may still be debt that is owed by the borrower. A good negotiator may be able to work to make sure that a borrower comes away with the debt completely settled. A short sale occurs when a third party purchases the property and the lender agrees to accept whatever price this buyer pays as settlement for the original mortgage. Forbearance is a term that applies when a lender agrees to back off after the debtor has taken a particular course of action such as listing the property for sale or beginning needed repairs. Seeking home foreclosure information can only benefit both lender and borrower. Sometimes a combination of common sense and mercy can turn a bad situation around. The Bible talks about the mercy and grace of God. "The LORD is merciful and gracious, slow to anger, and plenteous in mercy." (Psalm 103:8)
When all else fails, bankruptcy may be the only way to hang on to a beloved home and smooth things over with creditors. By filing for a chapter seven or a chapter thirteen bankruptcy, property repossession proceedings can be halted before a final agreement with the lender has been reached. However, most financial experts will counsel their clients that bankruptcy should come only as a last resort since a consumer's credit history can be irrevocably damaged. If a borrower is able to get back on their feet to the point of attaining a new loan, this loan can be used to pay off the old mortgage and gain a fresh start. For some individuals, the only option is to give up the property all together and walk away. If, after seeking home foreclosure information, a borrower sees that there is just no way to retain ownership of the home and that there is little point in spending more money to try to hang on to the property, walking away may be the best option.
Some of the most valuable courses of action to take when seeking home foreclosure information could include reaching out for help, hiring a professional negotiator to fight on the borrower's behalf, and maintaining communication with the lender. There are a variety of options available. The wise homeowner will check out these options before simply giving up. Of course, continuing to make payments on schedule is important. Even if a homeowner is seriously behind in making payments, the good faith that is shown in continuing to pay what can be paid will work in the borrower's favor.
Free Foreclosure InformationDon't get scammed by companies offering home foreclosure information for a fee. Homeowners facing potential property loss may be able to save the homestead and their pocketbook with free foreclosure information from credible sources; some may be experts in loss mitigation. Due to a national housing slump, borrowers with adjustable rate mortgages (ARMs) who were easily financed when interest rates were low are now fighting to make higher payments tied into a fluctuating economy. A proliferation of foreclosures -- nearly 180,000 filed in June 2007 -- has spawned an onslaught of commercial enterprises promising instant relief for distressed homeowners. But desperate consumers don't have to fall for quick fixes or exorbitant fees for information that can be readily found at the fingertips. Before signing on the dotted line with an unreliable resource, homeowners can surf the web for government entities, pro-bono attorneys, and non-profit consumer credit counseling agencies offering no- or low-cost foreclosure information.
The Department of Housing and Urban Development (HUD) and state government housing offices provide counselors to help steer distressed borrower/owners through the foreclosure process, or offer alternatives to help them hold onto the American dream. HUD-approved counselors not only provide free foreclosure information, but they negotiate with borrowers' lenders to develop workout plans and suggest stringent financial housekeeping to catch up loan payments in default. Even if the house is slated for the auction block, there are ways to keep the property. Qualified housing counselors may suggest filing Chapter 13 bankruptcy -- a drastic measure, but a proven legal tactic to delay the sale of property and give debtors time to formulate court-approved repayment plans. While the threat of losing a home can be harrowing, sellers in search of information should exercise caution. Beware of promises that sound too good to be true; they usually are. Borrower/owners should also be leery of companies which offer to catch up delinquent mortgages and rescue the borrowers credit. Pre-foreclosure distress sales are pretty common and perfectly legal; but sellers should make sure buyers purchase the home outright, legally transferring property deeds. Read the fine print and consult an attorney before agreeing to any "quick relief" scheme, which may relieve mortgage default, but forfeit ownership.
Knowing whose advice to take when seeking free foreclosure information takes wisdom on the part of the consumer. Taking the time to carefully read and research facts provided by agencies online will give consumers a good overview about the loss mitigation process and alternatives. A home is one of the largest and most important investments an individual will ever make. No one can afford to make rash decisions or rush into legally binding agreements at the risk of losing one of their most prized possessions. As Proverbs 4:7 says, "Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding." Verse 26 of the same chapter says, "Ponder the way of thy feet, and let all thy ways be established." In the long run, wisely taking the time to seek and search out reliable home foreclosure information and carefully considering options to forfeiture will pay off.
Unlike unscrupulous companies, federal- and state-approved agencies and qualified non-profit consumer credit counselors want to help consumers keep the property, with no strings attached. Knowing available options provides homeowners with much-needed ammunition to prevent the bank from repossessing the family homestead. Approved counselors may advise selling personal property, like the family's second car or jewelry, to accumulate enough money to offset delinquent mortgage payments. Or they may suggest proposing workout plans to lenders whereby homeowners can pay catch up default payments over a period of time. If debtors can provide substantiated proof that payments have fallen behind due to a legitimate temporary financial hardship, such as an illness, divorce, or job loss; and that the temporary hardship can be remedied; lenders usually approve a reasonable mortgage modification. HUD and state government housing counselors can provide home foreclosure information to help consumers compile financial statements, accurately assess future earning potential, and satisfy lender requirements. Delinquent mortgage payments or interest rates may be reduced or deferred to help prevent borrowers from losing their homes.
Consumers seeking home foreclosure information can also confer with the mortgagor, the financing institution which holds the note. Homeowners should never be afraid to have open and honest discussions with lenders regarding personal financial setbacks which have resulted in an inability to pay. If a lender has been sending out notices of default and intent to cure, or repossess property, owners should call the individual listed on the correspondence and face the problem head on. The worse response to a collection letter is to not open it. Ignoring late notices and warnings of mortgage termination won't make them go away. The lender really doesn't want the property, they want the payment; and the sooner indebted homeowners face the music, the better the chances of coming up with an amiable method of debt resolution.
Another source of free foreclosure information is the pro bono attorney. Lawyers who work pro bono (for the good) are public or private legal practitioners who agree to take on debtor cases free of charge, especially in an instance of substantiated hardship or below-the-median income. Contact a local non-profit legal aid service, surf the Internet, or check out the local business directory to find pro bono legal assistance and home foreclosure information. And don't forget the local library; it's full of how-to books on standard proceedings, acceptable work out plans, and financial management. Computer savvy homeowners can also find federal affordable housing advocates, consumer credit counseling services, and website articles which provide user-friendly, easily understood, and absolutely free foreclosure information.