| According to RealtyTrac's website there have been | | | | qualify for this if you've recently experienced a |
| over 2 million foreclosures in 2007. The top three | | | | reduction in income or an increase in living expenses. |
| foreclosure states are California, Texas and Florida. | | | | You may have to provide proof of your current |
| According to the Mortgage Bankers Association, 1 | | | | financial situation. |
| out of every 200 homes will be foreclosed. | | | | 4. Deed-in-lieu of foreclosure. You may be able to |
| If you are facing foreclosure, put away those credit | | | | voluntarily "give" your home back to your lender. This |
| cards and stop charging. Put yourself on a spending | | | | may help your chances of getting another mortgage |
| plan immediately. Contact your lender's litigation or | | | | loan in the future. |
| foreclosure department to inform them you are | | | | 5. Mortgage Modification. You may be able to |
| having a financial hardship. Monitor your finances until | | | | refinance the amount owed and extend the term of |
| your other debts are paid off so you don't get into | | | | your mortgage loan for the missed payments. You |
| the same situation in the future. Confirm the | | | | may qualify if you've recovered from a financial |
| agreement with your lender in writing. Be sure to | | | | hardship and your net income is less than it was |
| consult a tax advisor to determine rules regarding | | | | before you defaulted on the loan. |
| foreclosure. Don't be discouraged, there are several | | | | 6. Pre-Foreclosure Sale. You can sell your property |
| ways you can save your home. Here are 6 tips to | | | | and pay off your mortgage loan to avoid foreclosure |
| assist you when facing foreclosure: | | | | and damage to your credit rating. If you know you |
| 1. Short Sale. You can sell your house for less than | | | | cannot afford to afford to make the payments you |
| what you currently owe on your loan. Your home | | | | may sell the house yourself before the foreclosure |
| does not have to go into foreclosure, you don't have | | | | sale date and save some of your equity. Contact a |
| to file bankruptcy and the filing process is much | | | | Realtor and tax advisor for rules regarding |
| faster. The lender saves money without having to file | | | | pre-foreclosure sales. |
| foreclosure proceedings, but does lose money by not | | | | Ask the lender if the option chosen will be reported |
| getting the full price of the home during the sale. The | | | | on your credit report, if so ask that the option not |
| buyer gets the house at a reduced price. | | | | be reported. When facing foreclosure or any financial |
| 2. Partial Claim. Your lender may be able to work with | | | | crisis the key is to contact your lender immediately |
| you to obtain an interest-free loan from the Housing | | | | to setup a payment plan or discuss other options. |
| and Urban Development agency to bring your | | | | Don't wait for the worst to happen - tackle the issue |
| mortgage current if you qualify. Visit the HUD | | | | right away. Lenders are more willing to work with |
| website or call 800-CALL-FHA for more information. | | | | you if you are honest about your situation. Whatever |
| 3. Special Forbearance. A lender can arrange a | | | | option you choose stick to the terms of your |
| repayment plan based on your current financial | | | | agreement and adjust your spending habits so you |
| situation or may provide a temporary reduction or | | | | don't get into the same situation in the future. |
| suspension of your mortgage payments. You may | | | | (Originally published at Ezine Articles). |