How to Avoid Losing Your Home

Avoid foreclosure and keep your house

“RealtyTrac, a home buyers and sellers help website, found that a total of 3.2 million foreclosure filings, default notices, auction sale notices and bank repossessions were

reported on 2.3 million American properties during 2008.” This doesn't include the hundreds of thousands that are currently late on loan modifications and are expected to

end in foreclosure next year. Banks and mortgage lenders are not making it any easier by refusing to deal with distressed homeowners.

Reasons to avoid foreclosure:

1. The homeowner will always have to disclose they have had a foreclosure on any mortgage application.

2. Credit scores will be lowered by 300+ points affecting the ability to get a car, apartment, credit cards, etc.

3. A foreclosure is the one credit report item that is almost impossible to repair.

4. Military and government security clearance could be at risk with foreclosure.

5. Many employers run credit checks on prospective employees and foreclosure is one of the top items that jeopardize employment.

Ways some homeowners have been able to avoid foreclosure:

1. Reinstatement, which means to bring your loan current.

2. Forbearance where home owners apply for a repayment plan with their lender.

3. Refinance which is where a home owner applies for a new loan with reduced monthly payments.

4. Loan Modification to change original loan terms.

5. Selling your property by using the equity to pay off or pay current your delinquent mortgage.

6. Deed in Lieu of Foreclosure also known as the friendly foreclosure where the home owner essentially walks away from his mortgage by giving his deed to the lender (equity and all).

7. Bankruptcy can stall foreclosure but not prevent it.

Time is of the essence so don't way until it's too late to seek help. If you do any thing DONT just walk away because you think you don't have any equity in the home. This is probably the biggest mistake homeowners make. Only a licensed professional real estate agent or appraiser can give you the current market value of your home. You may be sitting on a gold mine (you may have equity depending on a few variables). To learn more contact me at or contact me with your questions.

Recourses:

HUD approved housing counselor

FHA

Making Homes Affordable

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