After saving one of my close pal from foreclosure, I realized that if majority of the people knew how to stop a foreclosure and took the right steps at the right time, then mostly a very few people would eventually lose their home. Foreclosure generally occurs if the payments are delayed by few months, depending on the mortgage terms between the customer and the lender.
In most of the cases even if the bank is sells the property, the borrower may still have to pay for any difference between the remaining balance on the loan and the sales price of the property at foreclosure, depending on the mortgage terms and the concerned local law. Foreclosure often stays on a credit report for several years, so foreclosure prevention is very important and essential.
There are a number of methods available for foreclosure prevention such as refinancing the loan, loan re-modification and many more but the key to preventing your from foreclosure is to act fast.
Mostly people seem to be terrified even by the word ‘foreclosure’ but in realistic sense there are many options for foreclosure prevention, so you need not panic about it at first.
You can try to negotiate a private payment plan with the bank or mortgage company, which are often called forbearance or loan modification agreements. But approval of these loan modifications lies totally in the hands of the lender, so you must find out quickly whether or not it is a feasible option in your case
As you research your options over the internet you will notice that there are many companies that make promises to stop a foreclosure, who claim to have varieties of specialized knowledge in negotiating foreclosure. While consulting such companies you must exercise extreme care because none of these companies can really represent you in court of law and have no leverage to force or convince your mortgage company to settle with you. Although if you think you are in grave danger of facing foreclosure, you can call up and talk to a counselor who can help you assess your current situation and map out a solution.
The most important point to remember about foreclosure prevention is the fact that no matter whatever you do, you must file on time because failing to meet a filing deadline could easily result in loosing your home. You must make all payments required under the plan otherwise creditor can start the foreclosure back up.