Article Advise

submitted: Aug 26th 2008 | by: GerryVandewall | Total views: 1 | Word Count: 439 | |

Most of us run into money problems at some point in our lives, and have to try some creative financing. If you own your home, and are in a tough situation, you may be at risk for losing your house through foreclosure. If you find yourself in this kind of trouble, the good news is, there are some ways to hold onto your home.

A foreclosure means that the mortgage company or lending institution for your home can take it back to resell if you fall behind on payments. When this occurs, you have several options. First, you can go through a process to keep your home. Second, you can sell the home on your own and then pay off the loan plus any fees. Third, you can allow the home to go through foreclosure where they sell the home and you are responsible for any difference between the price the house sold for and the payoff balance.

One thing to take very seriously is NEVER ignore a letter you receive from your mortgage holder. They will start sending them once you get behind in your house payments. Call the person who sent the letter and give them a detailed explanation of your circumstances. They certainly don't want to be burdened with your home, anymore than you want to lose it. It's hard work for them, costly, and not something they really want to take on. Most of the time they will be willing to work with you to find a solution.

There is something called a Special Forbearance that may be available to you. It can allow you to make lower or even no payments for a period of time. This is generally an option if you become unemployed, lose part of your income, or have incurred an unusual increase in your living expenses.

Another option is a Mortgage Modification. With this option, your mortgage is refinanced or the term of your loan extended. The way this program is designed, you have an opportunity to become caught up on payments. A Partial Claim is another possibility whereby your mortgage company would help you secure an interest free loan from HUD, which helps you bring your mortgage to a current payment status.

If you ever do face the possibility of foreclosure, before you completely stress out, talk to your lender immediately to explore options. There well may be programs that you qualify for. Ignoring the problem won't make it disappear.

Copyright 2006, Gerry Vandewall, All Rights Reserved. This article may be published on web sites or in newsletters provided this notice and the resource box is included without ammendment.

About the Author

Gerry Vandewall runs the Foreclosure OK, web site that focuses on a range of resources about foreclosure issues. For more details, go over to: http://www.foreclosureok.com

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