Home Foreclosure Options

Mortgage

Foreclosure occurs when the homeowner falls behind in monthly mortgage payments and defaults on the loan.

If you contact your bank you might not get much help because they are backed up with owners who have already defaulted and are going through repossession. If you have the advice of a good lawyer they know of options we don't. They can protect you from people and companies that are preying on homeowners who are desperate for some help with their mortgage. Foreclosure

Below are some of the most common options..

Reinstatement
Loan reinstatement is where a lender has started the process and the homeowner finds a way to "reinstate" or pay back the entire balance owed. The deficient amount includes back loan payments, accelerated interest costs, attorney's fees, and late penalty charges. The lender will not take partial payments in this case and will most likely continue with the foreclosure unless the full reinstatement amount is paid.

Forbearance
A forbearance agreement between the lender and the homeowner stipulates that the homeowner must make additional monthly payments for a specific period to make up the reinstatement amount. This, in itself, can prove to be very difficult to make up since the owner had difficulty in making the original payments.

Loan Modification
A loan modification program was the most common method of resolution for many years. It involved the lender issuing a new loan agreement where the deficiency amount was added to the loan balance and paid in identical monthly payments but for many more months. Another type of loan modification was to very slightly increase the monthly payments over the remaining term of the loan.

These are not all of your options...

If you would like more information on the foreclosure process including definitions of key terms, differences among different states and things you can do to prevent it, check out this site: www.help-for-foreclosure.com. You can also find out all rights that you have for your specific state by contacting your Pre-paid Legal Attorney for advice on your possible foreclosure and to write letters to your lender in language they understand and get you noticed. You owe it to you and your family to have these valuable legal services!

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