| Foreclosure is a legal process wherein a bank or a | | | | considered to avoid foreclosure of properties. |
| creditor takes ownership on a real property | | | | 1. One option that may be considered is the Partial |
| because the owner was no longer able to comply | | | | Claim process. In this option, the mortgage |
| with the promissory notes that were issued to | | | | company can help the borrower to negotiate and |
| him. Once the process has been completed, it | | | | obtain a loan that is interest free. Qualifications |
| usually means that the lender has foreclosed the | | | | include loans that have four months delinquency |
| mortgage. | | | | but not more than 12 months. The mortgage |
| There are two types of foreclosure in most | | | | should also not be in a foreclosure status and the |
| states in the United States. The bank claims | | | | person should be able to begin payments in full. |
| ownership of a property and takes hold of the | | | | This will help the person in making the mortgage |
| title with the use of "deed in lieu of foreclosure" | | | | in a current status. A promissory note is also |
| to satisfy ones debt. This is usually done in a | | | | issued but is free of any interest. |
| form of a contract. On the other hand, the | | | | 2. Special Forbearance may also be an option to |
| foreclosure proceeding, one property is placed into | | | | avoid foreclosure of property. In Special |
| an auction held by an officer in court. This | | | | Forbearance, a mortgage company can talk out |
| proceeding is used in most cases to protect the | | | | with the borrower before resorting to foreclosure. |
| equity the owner has in the property. | | | | However, the agreements may vary depending |
| Foreclosure happens when a payment on | | | | on the creditor. |
| mortgage has been missed. The property is used | | | | 3. One may also resort into filing a bankruptcy to |
| to cover the amount owed to a bank or a credit. | | | | avoid foreclosure. Most lawyers advise their clients |
| There are some cases wherein the value of the | | | | to file for bankruptcy. This is better than allowing |
| property is not enough to satisfy ones debt. This | | | | one property to be foreclosed. However, |
| leads a person to losing a property and at the | | | | borrowers may still be stuck in having bad credits |
| same time still owing a balance on the creditor or | | | | even after they have filed bankruptcy. That is |
| bank. Foreclosure proceedings have negative | | | | why it is important that the person always consult |
| effect on ones credit records and might impact | | | | any decision with a lawyer. |
| future decisions. That is why it is important to | | | | 4. Selling the property is also one option. It is |
| avoid foreclosure as much as possible. | | | | recommended that the borrower should contact a |
| It is very important to not ignore notices sent by | | | | real estate agent who is experienced with |
| a mortgage company. If there are problems and | | | | foreclosure investments. |
| difficulties in making payments, it is best that the | | | | One major step in avoiding foreclosure is by being |
| person contact the creditor immediately. | | | | responsible in all the debts that are owed. There |
| Everything may be settled and agreed upon once | | | | are times that unexpected finances occur and the |
| the situation has been explained. It is important to | | | | borrower should be responsible enough in |
| provide them with documents that may prove | | | | informing the creditor about it. Foreclosures may |
| the person's financial situation. | | | | be avoided if borrowers are responsible and alert |
| There are also other options that may be | | | | in looking into their debts. |