If you are falling behind on your mortgage payments, you can take advantage of several mortgage foreclosure prevention options that may be available to you. Your lender wants to work with you. You should speak to your lender to find out what mortgage foreclosure prevention programs you qualify for. Foreclosure is expensive for lenders, and they would rather find a way for you to prevent foreclosure, and keep your home. Lenders are not in the real estate business, and don't want any more foreclosure inventory. You should also talk to a foreclosure defense attorney to find out about mortgage foreclosure basics and your legal rights and defenses.
Options to Prevent Foreclosure
Common options to prevent foreclosure:
Loan Modification
Your lender restructures your current mortgage making your payments more affordable by lowering your interest rate and/or extending your loan term.
Refinancing
Obtaining a new fixed rate mortgage with a lower interest rate to pay off your existing mortgage. This option is available if you have equity in your home, or you qualify for a refinance under the government’s HARP program.
Repayment Plan
Your lender may be able to schedule a repayment plan for you to make past due payments.
Forbearance
You pay a portion of your payment for a short period of time until you get caught up. At the end of the forbearance, you start making you regular monthly mortgage payments. Sometimes your lender will agree to reduce your principal.
Short Sale
Selling your home for less than your loan balance with your lender’s permission and satisfying your mortgage debt obligation.
Mortgage Relief for Military Service Members
Lenders cannot institute foreclosure against military service members while on active duty and for 90 days after they finish their duty and return home.
Deed in Lieu
A voluntary transfer by you to your lender by signing a deed and walking away owing nothing to your lender.
Bankruptcy
You should seek a lawyer’s advice before you file bankruptcy. You may be able to keep your home in a bankruptcy depending on which type of bankruptcy you file.
Watch out for fraudulent foreclosure rescue scams from companies that do nothing but take your money. Always work with a reputable attorney and mortgage broker. Don’t ignore foreclosure notices or a lawsuit that your lender files. You have a right to respond and defend yourself in a foreclosure proceeding to save your home from foreclosure.
When to Consult a Foreclosure Defense Attorney
Foreclosure laws are very complicated, and most people don’t understand them. The attorney can advise you of your legal rights and obligations. A foreclosure defense attorney is skilled and experienced at negotiating a resolution with your lender to prevent foreclosure.
