The number of homes that receive foreclosure notices continues to increase. But troubled homeowners must know that they can prevent foreclosure. It is their lenders duty to present options, but it is the delinquent homeowner’s responsibility to ask.
Here are 10 alternatives you can choose from to prevent foreclosure:
- HOPE NOW
In alliance with the mortgage industry, Hope Now gives aid to trouble homeowners by helping in the:
• Refinance of existing subprime mortgage in exchange for a new loan
• Extension of present interest rates for 5 more years
• Moving of subprime loans to FHA Secure loan - REINSTATEMENT
This alternative can only prevent foreclosure if you have a bulk in your savings. But if you have saved money, will you actually let your home be in danger of repossession?
- SPECIAL FORBEARANCE
For homes that are facing temporary struggles that caused them to be delayed with their monthly mortgage, their lender may give them a window period with small or no payment at all. But you should find out if you could really pay regularly, because special forbearance is only temporary. It can not totally prevent foreclosure if your financial problems are much more serious.
- MORTGAGE MODIFICATION A
This option will help the delinquent payer prevent foreclosure by asking extra years or extension in paying for their mortgage.
- MORTGAGE MODIFICATION B
In this alternative, the lender will refinance the home and lower the payment to prevent foreclosure.
- SHORT PAY
If you are trying to sell your home at a price lower than your mortgage, you might consider a short sale or short pay. This is best if your lender will agree to receive less than the full payment but what your whole house is worth.
- DEED IN LIEU OF FORECLOSURE
You must only choose this if you can not prevent foreclosure anymore because you will voluntarily give the deed of your home to your lender. But lenders would rather work with you in fixing your mortgage than get your property.
- FHA LOANS
This is for those who have FHA loans. The FHA-Insurance fund will pay some of the delayed mortgages but the homeowner will eventually resume regular payment. The Department of Housing and Urban Development will have legal claim on the house if you refinance of decide to sell the property.
- VA LOANS
The Department of Veterans Affairs will help VA homeowners prevent foreclosure.
- FHA Secure
This is suitable for non- FHA loans that are have adjustable rates and resetting payment.
Do not lose hope. With all these alternatives, you can eventually prevent foreclosure.