Does this scenario sound familiar?
Your bank lender is breathing down your neck. The calls keep coming and you don't want to answer your phone. It seems inevitable that you're going to lose your home to foreclosure soon. Well, relax; it is not the end of the world. You CAN stop bank foreclosure, possibly with a mortgage rate modification, and regain your peace of mind. Later, we'll look at a few ways that you can stop bank foreclosure before it's too late. But first:
Are you sure you want to keep your home?
In many parts of the country, property values have been cut in half since the peak of the real estate market. If you're one of the many homeowners who are 'upside down' on their mortgage, owing the bank more than your property is worth, you have to ask yourself,
"Do I really want to stay in this property?"
If the answer is "No", you should look into the possibility of a short sale or a deed in lieu of foreclosure.
If, however, you have some equity built up in your home you probably have more motivation to try to stop bank foreclosure in order to save your home.
Analyze Your Situation
The first thing you should do is analyze your overall financial situation. Write down a list of all expenses. Which items on this list could you eliminate right now? Fewer restaurant meals, rent a movie instead of going to the theatre, or perhaps skip that morning Starbuck's? A willingness on your part to make some sacrifices will go a long way in convincing your lender to work with you.
Next, write down every source of income for your household. Now write down any assets that you might quickly turn into cash. If you are only coming up a few hundred dollars short on your bills each month then it is very likely you can save your home. If, however, you find that you're drowning in debt then trying to stop bank foreclosure may not be the best answer.
You might be able to stop bank foreclosure by earning a few extra dollars each week. There are many good work from home programs that could enable you to make a few hundred dollars each month. Be sure to do your homework, though, as there are also many "get-rich-quick" scams around. One legitimate work-at-home program we've found is Project Payday. It does take some work, but the earnings can be very good. If your home is important to you it would be well worth the extra effort to stop bank foreclosure by earning a little extra.
Working With Lenders
If you went through a temporary crisis that left you short on funds, you may be able to negotiate directly with your lender for a short-term repayment plan to bring you up to date.
If your payments have gone up and placed you in the position that you cannot afford the home in the long term, you will need to bring the mortgage payments back to an affordable level by seeking a loan modification agreement to resolve the problem, or obtain refinancing from another lender. The alternative is to move on to more affordable housing.
If you could use some help figuring out the best course of action for your individual situation, you can speak with a foreclosure specialist. They typically offer a free consultation and they often come up with options you had not considered. One specialist we found that has an excellent reputation for customer service and offers a money-back guarantee is American Mitigation Law Group.
There are also good resources available on the internet and "do it yourself" stop foreclosure handbooks that will provide you with the information you need to make these decisions.
Remember, the first step to stopping foreclosure is to let your lender know that you want to work something out with them. They may be willing to grant a mortgage rate modification. However, they usually only have a limited amount of time in which they will negotiate before they proceed with the foreclosure process. You must act quickly in order to stop bank foreclosure.
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