How To Stop Foreclosure -> 4 Part Series – Part 1
Stopping a foreclosure from happening is often a devastating and very stressful time for home owners in Florida. The hardest part is to actually deal with the honest truth and why you got to the situation you are in right now. There are many unforeseen reasons why your home could be in danger of foreclosure and if you are in that position right now, you need to act NOW to stop foreclosure.
Our four part stop foreclosure series will show you how this is done, giving you options to act upon and hopefully allowing you to keep your Florida home for good.
But before we show you the first option to stop foreclosure let’s look at the potential reasons that can get you there:
- Unexpected job loss
- Defaulting on your mortgage
- Family death
- Illness
- Loss of second income
- Divorce
- Growing debt
- Unexpected bills
Each of these is often reason enough for home owners to get into financial strive, facing pre-foreclosure without even expecting it to happen. Luckily though, there are ways to stop foreclosure and the faster you act on these, the higher your chances at keeping your home.
How to stop foreclosure part 1
The first part of stopping foreclosure is really the easiest. Essentially you will try to prevent the whole foreclosure process from even starting and to do this you need to stop the filing of a “Notice of Default”.
This notice is submitted by your lender to an attorney in the event when you default your mortgage, meaning you can no longer pay your mortgage payments on time.
If you find yourself in a tight financial position due to any of the above reasons or else, speak with your lender at once. Tell them why you struggle to pay the mortgage and ask for help to find a solution. Your lender will most likely come back to you with some possible solutions such as:
- Helping you to work out a repayment plan, also called forbearance.
- Debt forgiveness which cuts you short from paying the missed payments.
- Repayment plan; with a repayment plan you can take pay back additional funds into your loan each month until you have caught up to your defaulted pay.
- Note modification; if you have an adjustable rates loan your lender might set the interest rate for you to avoid fluctuations. Other ways of note modifications include changes to the amortization period.
- Partial claim; your lender might suggest to take out another loan to help pay back your mortgage.
- Refinance; to refinance your mortgage loan, you need to have sufficient equity in your home. If that is the case, your lender will increase your loan balance to include the back payments and then re-amortize the loan.
Keep posted over the next few days when we will cover part 2,3 and 4 of how to stop foreclosure. Florida foreclosure help information.
