The first thing to do is not to wait until it is too late to make any effort to save your property. This means that you should make an effort to respond whenever you receive any notification from the lender regarding unpaid or overdue mortgage payments. The faster you respond to the lender notifications, the better your chances of avoiding a foreclosure.
Today, there are a number of options that can help you prevent your house from being foreclosed. For example, you can modify your current mortgage by getting a short repayment plan or a refinance loan. Apart from this, you can also consider a short sale, a friendly foreclosure, a deed in lieu, among others.
When you choose to modify your existing mortgage, you have to arrange with the bank to temporarily change their terms. The lender will either reduce the interest that you will be paying, or he can extend the amortization. This extension will reduce your overall payments. If you are having a difficult time modifying your current mortgage by yourself, you should engage the services of a foreclosure negotiator. Go for a professional who works with a registered realtor company and who has handled matters similar to yours before.
After the modification, the borrower and the lender will agree on a repayment plan. In the arrangement, the borrower will agree to pay part of the outstanding mortgage payments and arrange to pay the balance over a period of months. The lender will determine the amount that the borrower should pay to cover these arrears. This foreclosure prevention plan is usually approved if you have proof of income.
Article Source: http://www.freeliveknowledge.com
