In the Face of Foreclosure

All the Latest News on Dealing with Foreclosure
By: Valerie Middleton

Don’t let the immense negative equity of the current residential housing market ruin you by knowing your options in the face of foreclosure. The following two alternative routes can help you to avoid foreclosure.

Retain your home.
Opting to take this route means that you will keep your home and will involve one of the following actions:

Make a repayment plan
Work with your lender to create a repayment plan in which you will pay a delinquency fee in addition to your regular monthly payment for a specified period of time. Find out if repayment plan is the correct choice for you.

Create a special forbearance plan.
Arrange to cease current payments for a specific amount of time, all of which will be paid back later at a higher rate.

Modify your mortgage
Refinance your debt or extend the terms of your existing mortgage contract. Get a loan modification resolution form.

File for a HUD partial claim
If your loan is FHA insured you may qualify for a FHA-Insurance Fund issued by HUD.

Opt to refinance.
Use the amount of equity already established in your home to cover the delinquent amount due. Get your numbers straight with these refinancing options.

Dispose of your home – You may arrange to dispose of your home without foreclosing through the following methods:

Sell your home. Depending on the amount of equity in your home, you may be able to sell your home for an amount larger than the amount you owe. Know your rights in a market of declining home prices.

Undergo assumption. Signing your home over to another person will transfer ownership of your home and any payments due to another party.

Hold a pre-foreclosure sale. Use the amount gained from the sale of your home to balance the mortgage debt despite the fact that the amount collected from the sale of your home is less than the amount you owe. Not sure if a pre-foreclosure sale is for you? Hold a Pre Foreclosure sale, learn more.

Receive a deed in lieu of foreclosure. Avoid damaging your credit by voluntarily returning all ownership back to the lender and calling it even. Learn more about the correlation between your credit and loans.

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