Preventing Foreclosure Proceedings and Understanding Your Options

Every year over 8 million homeowners areVA or other government loans you may qualify
seeking help preventing foreclosure proceedings.for even more options.
This is a stunning 30 year high. Experts projectFile for Bankruptcy - Some attorneys may advise
that by 2006, 12 million homeowners will bea homeowner to file for bankruptcy. This is a legal
teetering on the brink of foreclosure. Manyway to avoid the foreclosure process. However
homeowners are not aware that they canthe process may still continue and you will be
prevent foreclosure and save their house. Did youstuck with bad credit for 7 years. You should
know that you can stop the proceedings up to anconsult your attorney about the option of
hour before the auction takes place?bankruptcy.
As a homeowner facing foreclosure there areSell your home - The problem with selling the
various options available. We will briefly examinehome is that if you list it with and agent, and it still
some of the most popular options.is not sold the lender does not care, you are still
Reinstate the loan - Ideally you would like to beon the foreclosure clock. The best way to go
able to pay the loan payments that you areabout selling the home in this situation is to
behind on and bring the loan current. These costscontact a real estate agent that is familiar with
would include whatever owed on the missedforeclosure investing. They may be able to put
payments, and any additional late charges oryou in contact with investors that will be happy to
attorney fees. This is the most efficient waybuy your home. Preventing foreclosure
when preventing foreclosure proceedings.proceedings can be as easy as getting in contact
Get forbearance - When a lender forecloses on awith a foreclosure investor.
property it is expensive for them. They wouldDeed in lieu if foreclosure - This is when you
rather work out some sort of arrangement thanwould voluntarily give the house back to the
proceed with the foreclosure. Talk to your lenderlender. The lender is not obligated to accept it.
and see if they are willing to work out a plan thatYou should discuss with the lender how they will
outlines a way to get current on your mortgage.report it back to the proper agencies. Should the
This agreement will vary depending on thelender choose to refuse the deed they are
situation and the lender. Some things they may berequired to file a Notice of non acceptance with
able to help with are a temporary reduction orthe county recorder.
suspension of your payments. If you have a FHA