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Unfortunately our current economic crisis is causing many people to lose their homes to foreclosures. Banks and other mortgage lenders are struggling to stay afloat as foreclosures cost those hundreds of thousands of dollars.

The good news is that if you take initiative when you first detect financial strain, your mortgage company may be able to work with you to help you save your home. Mortgage companies do not like foreclosures because it can cost over $100,000 on average. Lenders use foreclosure methods as a last resort in order to cut their losses. If a client is willing to work with them, they may be able to re-negotiate the loan to affordable payments.

Hector Milla Editor of the “Best Loan Modification Companies” website — http://www.BestLoanModificationCompanies.com — pointed out;

“…There are a few options that mortgage companies may offer. First they may offer to lower your interest rate. This will lower your monthly payments, although minimally, to make them more affordable. They may also refinance the loan to extend it to thirty or even forty years. For example if you had a fifteen year mortgage for five years they would extend the rest of the loan over thirty years to reduce your monthly payments. They also may use a combination of both methods in order to get your mortgage payments down to an affordable cost…”

If your mortgage company allows you to negotiate the loan, make sure you read all of the fine print carefully. Many mortgage companies will allow you to lower the interest rate only for a certain amount of time. Once that time expires the interest rate may go up again, which will increase your payments. Also make sure there you do not have a balloon at the end of your mortgage term. A balloon is where they take a large sum of the amount you owe and tack it on to the end of your loan. For example, you have a mortgage of $350,000. They calculate your payments for $250,000 for a period of thirty years. Then at the end of the thirty years you will be responsible to pay the additional $100,000 in one lump payment. For most people this will be impossible and you will be forced to refinance that additional $100,000.

“…Remember that the earlier you begin researching your options, the more options you will have. Once you find out that your financial circumstances may be changing you should research all of your options. The option will differ from state to state and is dependent on your loan terms. Your best course of action would be to pull out your mortgage agreement and contact your mortgage company immediately. There are also many reputable foreclosure assistant programs that can help you in any stage of foreclosure. These companies will be able to negotiate with your mortgage company on your behalf…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.BestLoanModificationCompanies.com

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-do-you-negotiate-with-a-mortgage-lender-once-your-house-is-in-foreclosure-1785970.html

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If you are facing a foreclosure you are most likely in uncharted territory and you have hundreds of questions.

One of the major questions people in this situation ask is whether they will be able to get their home out of foreclosure once the process has started. There are a few things you can do to get your home out of foreclosure once the process has started. However these things are generally speaking and may not apply to everyone. Foreclosure laws and policies vary from state to state and the terms of the mortgage may also vary.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“…There are a few things you can do save your home depending on your current situation. First off you should know that there is no way that you will be able to save your home unless you can provide proof of steady employment. The first situation I will discuss is if you lost your job and was temporarily unable to make your mortgage payments. Let’s say in this scenario you found a new job after a couple of months with equal pay and you are now able to resume making the regular payments…”

Most mortgage companies will not accept a partial payment after the foreclosure process has started, and anything less than the full amount of what is owed from all of the missed payments as well as any penalties is considered a partial payment. However in this situation your mortgage company should offer some sort of a solution other than paying the amount owed in one lump sum. Most likely they will tack on the accrued amount of the missed payments and penalties to the loan and spread the amount throughout the life of the loan so your monthly payments will go up very slightly each month.

Let’s say in a different scenario your income has been drastically reduced due to a pay cut or commissions not being as high as they normally are because of the economy. In this situation you may qualify for a refinance or a loan modification. With a refinance you will be able to extend the life of your loan or possibly reduce the interest in order to reduce your monthly payments. This option, however, will only be available to those who have not yet missed a payment and who have good credit.

“…For those who have already missed a mortgage payment you can talk to your lender about getting a loan modification. A loan modification is basically the same thing as a refinance; however it will have a more negative impact on your credit report. This is a good alternative to a foreclosure as it won’t hurt your credit half as bad as a foreclosure will and it will allow you to save your home…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-do-i-get-my-home-out-of-foreclosure-1783445.html

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A foreclosure will virtually destroy your credit which is why you should avoid a foreclosure any way that you can. There are so many things you can do to avoid foreclosure that it is always advisable to avoid it.

For instance, you can make arrangements with your lender so that you can sell the house on a “short sale” where your lender agrees to take whatever the house will sell for and then you would get a “release of mortgage” to record at your county recorder’s office to show the termination of your mortgage.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“…You will need to have a Realtor help you do this as it is not easy at all. To do a short sale, typically the lender will want you to have the property on the market for at least 90 days before they will consider giving you a “Deed in Lieu of Foreclosure,” following the short sale…”

Under certain hardship circumstances you can work out a “Deed in Lieu of Foreclosure” with your lender where you give it back to them. Clearly they do not want properties back in these hard economic times but there again, you may have a good reason to go in this direction.

You should contact a real estate attorney and find out if you have a “Right of Redemption” on your mortgage which will give you up to a year to get caught up on your mortgage.

You have some potential solutions to avoid foreclosure. When you default on your mortgage payments and go into foreclosure, you will not be able to buy another house for at least 4 years or more. Why would a mortgage lender lend you money for a house if you stopped paying your payments on your present home? In order to protect the roof over your and your family’s heads you must always pay your mortgage first even if it means not paying someone else such as credit cards.

After a bankruptcy sometimes you can get a house loan as soon as two years after its completion but this is not the case on foreclosure.

“…A foreclosure is the worst credit reference you can have and it will stay on your credit for ten years I believe. This negative credit reference could also impede your ability to get other kinds of credit when you need it as well, to purchase a car for instance or get credit for other needs…” N. Osorio added.

Do whatever you can do to avoid foreclosure even contacting your Senator or Representative for direction since this situation is being dealt with on a national level.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-bad-will-a-foreclosure-hurt-my-credit-1778915.html

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If you are facing foreclosure and you are looking for an option to save your home there are a few options that are available to you.

First of all the only way that you will be able to negotiate with your mortgage lender is to prove that you have steady employment. There are a few reasons why someone that has employment would be facing foreclosure. Some of the most common reasons are if the person has lost their job and had to take a job with less pay, if someone works on commission that has been affected by the economy, or if the mortgage payments have gone up exponentially due to a variable interest loan or loan with an arm.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — http://www.BestMortgageLoanModification.net — pointed out;

“…If you are in a situation such as the above, however you can prove that if your mortgage payments can be met if they were lowered, you may be able to qualify for a refinance or loan modification. Both of these options would lower your interest rate; extend the life of your loan or both in order to make the loan payments affordable…”

If you are able you should seek to do a loan refinance. The difference between refinancing a loan and doing a loan modification is the affect that it will have on your credit. A refinance will go on your credit as nothing more than taking out another loan. A loan modification will read on your credit report that you were unable to fulfill your loan agreement and the bank granted you the modification in order to cut their losses. However you will only be able to qualify for a refinance if you have not yet missed a mortgage payment and you have a good credit score.

If you have to try to do a loan modification it will adversely affect your credit, however it will not look as bad as a foreclosure on your record. If you are able to achieve a loan modification it will only mildly blemish your credit report and you will be able to rectify the damages within a couple of years.

“…The scenarios above are only available if you want to keep your home and you are able to prove that you have gainful employment. If this is not the case you may want to consider doing a short sale to minimize the damages to your credit report. Although you will still lose your home it will not look as bad a foreclosure and it will get you out from under your home to give you a chance to stabilize your finances…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-can-i-save-my-home-from-foreclosure-1779243.html

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If you are reading this, then you are probably already aware of the rising rate of foreclosures across the nation. You may even be one of those who are caught between a rock and a hard place regarding your mortgage payments.

You’ll find many helpful sites on the internet offering advice on how to negotiate with the lender, work out some type of payment plan, avoid foreclosing and keep your property. However, all of these suggestions have one thing in common. They presume that the individual has a source of adequate funds. This strikes me as somewhat ironic in that most folks who face foreclosure do so because they have inadequate funds!

Hector Milla Editor of the “Best Mortgage Loan Modification” website — http://www.BestMortgageLoanModification.net — pointed out;

“…Whatever situation has caused this lack of income, the fact is that the property has become unaffordable for them. Once this fact is realized, the financial focus should shift from how to retain ownership of the unaffordable asset to how to maintain a credit score until life circumstances change for the better. It is well known that foreclosure proceedings will devastate a good credit rating and once these proceedings take place, there will be no funds and no credit. Better to at least hang on to good credit by selling the property before a foreclosure takes place…”

There may be offers to purchase the property at greatly reduced price once it is in pre foreclosure. Better to be proactive and list the house on the market. You will most likely take a significant loss in order to sell quickly, but at least you will have a better chance of getting a market value offer, and just listing the house may forestall proceedings by the lender. Sadly, you will loose your home, but will be able to reestablish a more affordable home with good credit.

There is one alternative to selling to a third party. Some lenders will consider taking deed in lieu of debt. This means that the title to the property will revert back to the lender in exchange for forgiveness of the debt if the value of the property is deemed sufficient to cover the debt. In a way, this is like selling the property back to the lender. However, if the debt amounts to more than the property is worth, beware!

“…The lender may sue for the difference of the value amount, or report that amount to the IRS as taxable income for the owner. Credit scores may also be hurt by this arrangement. This should be a last resort strategy to use only when you just can’t find any buyers. Remember, the sooner a house is listed, the better the chance of a satisfactory sale and of a new beginning…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-can-i-sell-my-home-before-foreclosure-1779292.html

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