There are many ways an unforeseen hardship can reduce the joy of home ownership into an increasingly unbearable burden. You might have lost your job, or have an increasing pile of unexpected medical bills, or maybe your mortgage payments have increased beyond your budget. Ignoring the problem won´t help, it will only make it worse, no matter what the cause. You must act quickly to resolve the problem.
The following is a list of possible actions to stop foreclosure on your home:
1. Contact Your Lender - Do this as soon as possible! Your goal in contacting your lender is to create an agreement that will alter your mortgage and stop foreclosure proceedings before they´re finalized. Typically, lenders are not required to make adjustments to your loan, but many will consider it a viable option; one that benefits the lender and you and can include refinancing under certain circumstances.
2. Review the Options - After contacting your lender or mortgage servicing company that handles the loan for an investor, you might have other options available. Possible options to discuss with your lender include:
· Deed in Lieu of Foreclosure. Your lender may accept the return of the title to your home, but beware that the lender may still sue for loss and report any uncollected funds due to loss to the IRS as taxable income to you. This option may have negative effects on your credit report.
· Claim advance. If you have private mortgage insurance, your insurer through your lender may provide a cash advance to bring your loan payments up to date. Sometimes this money is interest free and may not have to be repaid for years.
· Re-Amortization. This option adds payments you´ve missed to the balance of the loan, but making your account current. Your debt will increase and your monthly payments will be higher unless the lender also agrees to extend the term of the loan.
· Short Sale. Many consider that short sale is one the best option available to help you avoid foreclosure, and it is an increasingly popular option. In a short sale, the lender accepts less than what you owe on the property, relieving the homeowner of debt. Lenders are often willing to accept a short sale because it greatly reduces the expense and time involved in foreclosure proceedings. In most cases a short sale does less damage to your credit than a foreclosure. As qualified REALTORS®, we will be exceptionally helpful in completing the short sale process with you.
WARNING: Beware of any company that claims that they guarantee they can stop any foreclosure no matter what you owe. The Federal Trade Commission recently compiled a list of warning signs that a "foreclosure fixer" company may be a scheme. Those warnings include any company that requires you to pay for services up front, tells you to send mortgage payments to it directly, or asks you to turn over the property deed, or tells you to avoid contacting your bank.
We help homeowners use a Short Sale to avoid home foreclosure in Somerset County and Middlesex County New Jersey real estate market.
This site is sponsored by "Cameron and Zoraida" at http://www.CameronAndZoraida.com
Cameron Henderson and Zoraida Maldonado, Broker Associates
Weichert Realtors, 3530 Rt. 27, Kendall Park, NJ 08824
(732) 398-1493 Mobile (732) 297-0200 Office
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