Preventing ForeclosureBy Alevoor Rajagopal
A stitch in time saves nine. If you acted in time, Foreclosure Prevention is quite in your reach. But the action that you take needs to be a meticulously crafted one with such a recipe that is based on fundamentals of sound economics. I am sure it must have crossed your mind that so much of planning is not for you. It is only natural for you to say this given the fact you are already under enormous stress facing foreclosure. But come to think of it. No financial planning was ever easy in this world. And neither is planning to prevent foreclosure nor was owning that home.
Is it really Possible to Prevent Foreclosure?
Well, the answer to this lies in many factors and many of them bear on you after all it is your home you dreamt of. Your financial troubles have not started over night. You knew before hand that foreclosure was imminent. It is this time you need to treat as an opportunity if you want to get out of this slap. Here are a few steps you can take to help your self.
Keep cool. Panicking only does more harm. Do not vacate your home as long as there is no sign of an eviction order. This can deprive you of some qualifications like one time payment grant from FHA insurance. Visit your lender and talk to the officer that deals with your case. There is a fair chance of him seeing a point in your request if you have a plan of action to recovery. Lenders are not in the business because they foreclosed many a home in the past. They might agree to give you a chance.
You need to work out many options simultaneously. If you are sure your position recovers in a year or two you can seek a refinance and a real estate broker might just help you with this. You can work out a remodeling of the debt, you can do this with your lender's help. Both of you together can figure out a new practical budget with reduced monthly payment. Looking at your current financial position, the lender may even grant a grace period estimated on your frank admission and confidence level. You no longer need to pay during this period when you are attempting to turn around. They call it forbearance in their parlance. This is allowed at lender's discretion based on your mortgage delinquency being not more than 12 months.
United States Department of Housing and Urban Development can pay the lenders if they file for partial claims. You will be required to sign an interest free promissory note in order to availing this.
If you do not see you making a turn around or no help is coming your way, you can not keep your home. You have to recognize that financial assistances call for some path to recovery. If such a solution is far from sight then it is advisable that you sell off your home. Because it can at least prevent you from a foreclosure suit. A real estate agent from your local area with an impeccable record can not just sell it for you but fetch a good value to see you will not face a deficiency suit.
Ultimately your attorney may advise you to file for bankruptcy.
The author Rajagopal has been writing on technical matters and in this avtar he gave up tags that confine to particular genre of writing. Rajagopal is a mechanical engineer and served the pharmaceutical industry. Of late he has been putting his efforts in to creative art and healthcare writing. He can be contacted at http://hope4diabetes.blogspot.com He is also writing at: http://vitamineh.blogspot.com and http://googleAll.blogspot.com
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