If you need help to stop foreclosure, you have obviously fallen behind with your mortgage payments. The time it takes to actually lose your home will vary and can sometimes depend on the value of your home. If your house is way upside down, lenders will sometimes delay the foreclosure process. If you have equity in your home they will most likely take it as soon as possible so they can sell it and get their money.
There are several options to stop foreclosure. The most common ways involve an attorney, either through bankruptcy filings or loan modification. Filing for bankruptcy will stop the proceedings, but it can be a temporary fix. A loan modification, on the other hand, will be permanent as long as you continue to make your monthly payments.
If you are very close to losing your home, an attorney will be able to delay this process long enough for a loan modification to be completed. If you have a few weeks until the sale date of your home, you may have another option.
The Obama Mortgage Plan (or HAM Program). When you put this program into action, your lender will not be able to foreclose on you for 90 days. This gives enough time to complete the loan modification and save your home. The great thing about the Obama mortgage plan is that is will reduce your current mortgage payments to 31% of your net monthly income. This includes the mortgage payment, property taxes and even homeowners insurance and HOA dues if applicable. The rates go as low as 2% and if they cannot reduce your payment to this amount with a rate reduction alone, your lender will increase the length of your loan (30 to 40 years) and may even reduce your balance.
Their are specific guidelines to qualify for this program and it might be a good idea to use an attorney for this purpose. If you are in danger of losing your home you do not want to screw this up! You only get one chance to modify your loan, so you want to get the best possible result.
If you would like more information on help to stop foreclosure, just visit the links below. Be sure to visit the blog and review the guidelines to see if you qualify for the Obama mortgage plan!
Question by Steve J: im in a bind how can i stop foreclosure on my home i just need a little more time to get my business back up?
Im self employed and i just need a little more time but the bank is not understanding they keep telling me that they are going to foreclose.this has put a big burden on my wife and i relationship.also is be in business for yourself good or bad?
Best answer:
Answer by chatsplas@sbcglobal.net
Well one or both of you need to get another job and pay them at least the monthly interest payments to buy yourselves some time. Pay something every month. TALK to them.
Add your own answer in the comments!
If it’s a successful business it’s good, if it’s not, it’s a trap and you should get out and onto the labour market. As the poster above said, talk to your bank and explain the situation. Then try to find a steady source of income which will, at least, service the interest without repayments. The bank should be happy with that since the loan is making them money in any case.
Finally, if it’s possible to sell your house and downsize or move into a smaller rented apartment, why not do that? If it’s a sinking ship you better get off while you can; avoid getting sucked down by the current.