Monday, June 9, 2008

Foreclosure Help, Prevent Foreclosure

Another in the series on foreclosure written exclusively for our site by Sean Roberts:

How to Save the Pain of Losing Your Home and Prevent
Foreclosure

by Sean Roberts

The mere thought of losing your home to foreclosure can
cause you a lot of anxiety. So you can just imagine how
painful it is if you actually lose your home. Fortunately,
there are plenty of ways to prevent foreclosure even in this
time of economic woes. Forget about all the things that you
read in the paper or have seen on TV about the inevitability
of foreclosure. If you really want to prevent foreclosure
and save your home, you have to think positively and
actively find ways to prevent foreclose instead of just
wallowing in despair.

Contact Your Creditors

One good way to prevent foreclosure is by explaining your
financial situation to your creditors as best you can, leave
nothing out, and ask them for their help. If you have
received a collection letter or phone call from your
creditors, do not simply run and hide. If you try to hide,
these lenders have ways to find you and then foreclose on
your home. It makes no sense to try to hide from them.
Instead of hiding from the situation, face the facts and
explain your situation to the creditors. If they ask for
your current financial records, do not hesitate. Give them
copies of what you have that helps you relate your
circumstances. The more cooperative you are, the more
willing they will be to help you and give you a chance to
stay in your home.

Ask For Special Forbearance

Consider asking for a special forbearance to prevent
foreclosure when you talk to your lender or creditor. A
forbearance is a special agreement to postpone any pending
action. Some special forbearances will allow you time to
arrange for a payment plan that is compatible with your
budget. Usually when you ask the bank or financial
institution for special forbearance, they will ask you to
prepare an income and expense statement showing what you can
afford to pay for your home mortgage. A representative of
the bank or other lender will review your statement and then
ask which expense items you can eliminate in order to free
up additional capital to pay your debts. The representative
may ask you for a plan on how you may be able to increase
your income in the near future.

Try Asking for a Modification to Your Mortgage

Aside from asking for special forbearance to prevent
foreclosure, you may also prevent foreclosure by asking for
mortgage modification or refinancing. Refinancing your loan
can help you get better terms and conditions of payments. In
most cases, when you refinance your loans, your creditors
will extend the term of payment and reduce the monthly
amortization of your loans.


Find more articles, tips and info from Sean Roberts at our site Foreclosure.
You can also check out our main URL for other topics we cover (FreeInfoDepot.com), plus our other active sites on Debt Reduction and Personal Security.

2 comments:

Andrew Sheldon said...

The US foreclosure market is looking pretty bad, which means bargains in the future. Japan also looks good, but the Philippines would have to be the most promising market in the Asian region.

jennie said...

Hi,

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Warm Regards

Foreclosu-re.info Team

http://www.foreclosu-re.info