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Saturday, October 31, 2009

A Quick Guide to Avoiding Foreclosure

By Justin Green

The housing industry is involved in a great deal of restructuring at the present time. House foreclosures are on the rise and have become all too familiar in the average American's vocabulary. Oddly, a large number of homeowners-many who are at risk of foreclosure, have put themselves in a risky situation.

Foreclosure is a legal process instigated by the lending institution to terminate a homeowner's right to reinstate the mortgaged estate. As a result the lender becomes the authorized owner of the property and can also sell the property to recover the principal money. Foreclosures only happen when homeowners fail to pay the stipulated payments as mentioned in the deed of trust for a period of more than 3 months.

These proceedings normally begin by sending a letter of notice called a notice of default to the homeowner demanding the mortgage payments. There are different types of house foreclosure and their application varies from state to state. However, the two most widely used and common types are by power of sale and by judicial sale.

America has experienced a large increase in foreclosure proceedings, above 79 percent in many cases. How do we put an end to this house foreclosure crisis? What follows are a group of tips that can at least help you individually to make a guide toward foreclosure stop.

First and foremost is communication. You must quickly and clearly communicate with your mortgage lender when you anticipate financial problems. Do not wait to receive a notice of default.

Second, as foreclosures are gaining momentum (and have been for some time!) you must locate a professional that has experience in this area. This step is very important and should be avoided at your financial risk. Do not pay for this advice there are far too many government agencies out there to help you free of charge.

Finally, realize there are other sources of help out there and you are not alone. Ask those that are involved in the process: your lender, professional help to point you toward other helpful institutions or information. Just by doing a search on Google you can find multiple helps and aids in your area so do not give up!

Awareness is the key when it comes to reducing the risk of foreclosure. Don't allow your emotions to get the best of you, rather stay relaxed and focused. After talking to experts apply the advice they give you and hope for the best!

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