Learn How to Stop Mortgage Foreclosure

By Peter Ewelling

If you are having trouble making mortgage payments and at risk of foreclosure their are several assistance options you may be qualified for such as home loan refinance, mortgage modification, repayment plans, reinstatement, or forbearance.

With so many home owners falling behind in monthly payments many homeowners are searching for a solution. The combination of a discounted property market and larger fees is too big a burden for lots of property owners to afford.

Lenders around the country are recognizing the many problems borrowers are experiencing and have begun offering relief programs. The dramatic increase in mortgage defaults is bad for lenders as well as borrowers, so in response lenders are often willing to amend mortgage contracts to help borrowers who may be at risk of foreclosure. Mortgage Refinance and loan modification are the two main programs used to modify the terms of a home loan agreement.

Home loan refinancing is when a mortgage holder takes out a new mortgage with better conditions and uses the proceeds to repay the current loan. Depending on the equity in your property this could be available to you.

Mortgage modification is an renegotiation between the mortgage company and borrower to change only certain elements of an existing mortgage agreement. These modifications can include reduced monthly payments and normally make it easier for borrowers to keep up with their home loan amortization schedule.

You can also find plans which are intended to allow home owners who have stopped making payments to get current with no late fees. These options maintain the existing mortgage agreement but modify it for a short time to accommodate financial hardship and include repayment plans, reinstatement, and forbearance.

A home loan repayment is a option that provides a grace period for delinquent mortgage holders to repay late monthly fees with no penalties. The past due payments are normally added to the monthly payments for a period of time at the end of which the mortgage holder is paid up.

Reinstatement is similar to repayment in that it allows delinquent home owners to repay past due mortgage bills. The difference is that reinstatement is one big lump sum payment. Reinstatement is often used along with forbearance as a means for borrowers to quickly get caught up with payments. - 32499

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Loan Modifications: Things You Must Know

By Ginny Krause

Here's a list of loan modification do's and don'ts to help you avoid common pitfalls.

Do know your rights.

80% of mortgage contracts violate one or more lending laws-and most of them go un discovered. But these violations can be your biggest weapon in the loan modification process. Your loan modification attorney can help you understand your rights and use them to get the results you want.

Waiting too long can hurt you.

The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn't mean it's safe to delay. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get help.

Be sure to work with your lawyer.

Your Home Loan Modification doesn't rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Be sure to give them a clear idea of your situation.

File for bankruptcy only as a last resort.

Contrary to popular belief filing for bankrupcy doesn't always stop forelcsure. But data from the American Bar Association shows that it doesn't work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway-so they're left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don't make any decisions without getting professional advice.

Make sure you have a backup plan.

Not all people will qualify for a mortgage loan modification. Maybe you've fallen too far behind, your lender may be simply hard to work with, or maybe you don't need it after all. In any case, it's always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.

Talk to your lawyer about a short sales if you can't get your mortgage modified. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it's not as damaging to your credit as foreclosure, so it's easier to get back on your feet. - 32499

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California Loan Modification - What It Means

By Myle Mckay

You will find many loan modification companies in California and in fact whole USA. Let me tell you one thing that four or five years before they used to charge some money upfront for this reason. On the other hand, according to the California senate bill 94, it has been cleared that no such company can ask for money upfront. Hence now you can go for this type of adjustment and you will definitely have to pay less.

As far as this kind of adjustment is concerned, you will have to keep in mind that it is done to uphold yourself from foreclosure threat. Normally the lending companies out here in this state do not really want to go for the foreclosure. Due to the slump this problem is certainly becoming quite distinguished since many people are loosing their job. Most of them are not able to pay back the installment now.

But with some sort of variation they might be able to pay back the installments. Suppose you are at present having the ARM scheme. This means that you must be paying more interest. Let me tell you one thing that if you are planning to own a house for longer period then you will unquestionably have to go for the FRM. In general the fixed rate mortgage generally carries the lower interest rates as compared to the ARM. Therefore you can go for the FRM. This is unquestionably a good idea and you will enjoy.

There is one other way as well. It might be that your fiscal condition is not sound. This means that you are not capable of paying the installment. But you can give details of your condition to the lender. There are stringent orders from the government that if this is the case then the lender will have to alter the loan scheme.

The most up-to-date news connected to this topic is linked to our president Obama. He has come up with the Home affordable loan modification program. This might turn out to be very advantageous for not only the people of California but for all the US citizens. This program will offer support to as many as 7 to 9 million home owners who are enthusiastic to pay their installments but are caught by the bad financial condition.

There are so many peoples who think that the only solution for foreclosure is bankruptcy. But when you will read this article then you will definitely find out that there are number of ways through which you can save your home from foreclosure. - 32499

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Fannie Mae Can Help with Mortgage Assistance

By Scott Siegfeld

Fannie Mae is the better known name for the Federal National Mortgage Association, a stock holder owned organization that last year was put under conservatorship of the government due to significant financial distress. There is a good chance they are the owner of the title of your property and if so you may be eligible for federal assistance.

Fannie Mae was enacted by federal charter in 1938 during the Great Depression. Its mandate was to increase the home mortgage availability for low income families by securitizing home loans. This was done to make sure that there would be stable supply of funding to the institutions responsible for giving home loans to home buyers.

In'68 the government converted the once public institution into a privately owned company under the direction of a board of directors. As a government sponsored enterprise its existence has been the object of criticism for its relationship to the government and near public classification.

In late 2008 the crisis in the domestic mortgage market forced the FHFA to put Fannie Mae under federal control. Once again the organization was returned to the control of the the government.

In 2008 the total value of United States' mortgage holdings was estimated to be about twelve trillion dollars. Fannie Mae, and its sister organization Freddie Mac, together held about half of that value. At the end of 2007 auditors reviewing the books determined that Fannie Mae had assets of more than 880 billion dollars.

With all of the companies business closely intertwined in just about all aspects of the US property market the mortgage crisis forced congress to intervene with public money.

Many experts suspected that Fannie Mae and Freddie Mac were supported by the federal government and once those suspicions turned out to be true the federal government assumed significant control with those institutions. That government influence is being used to implement policies to help distressed mortgage holders.

If you are a borrower with a loan guaranteed by Fannie Mae you could qualify for government mortgage assistance. - 32499

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Loan Modification Plans Aiding Distressed Home Owners

By Karen Simpaon

Mortgage modification describes the process where the borrower and mortgage company agree to modify the original terms of a mortgage agreement. Generally speaking any type of loan is able to be modified with certain conditions changed however the process is normally used with mortgage loans.

Loan modifications have recently exploded in usage because the national mortgage situation. It has been a way to assist home owners who are having difficulty making monthly home loan payments due to unemployment or growing loan costs.

Congress has decided that loan modifications are such a help for desperate homeowners that they are attempting to incentivize mortgage companies to offer them to their customers.

Modifications can help amend the terms of a contract to be easier on borrowers. For instance, monthly mortgage payment amounts could be lowered or late penalties reduced. The most common use for loan modifications is to lower monthly payments or interest rates.

Lots of mortgage holders have found themselves falling behind in payments following a substantial jump in the periodic payment amounts. Either because of a known payment bump or rate reset lots of households have suddenly discovered they have a mortgage payment they are unable to pay. Loan modification allows many home owners to reduce increasing payments.

Property owners who are late on their monthly payments or are in foreclosure can request home loan modification assistance. whatever the details of your financial situation the specific options open to you could vary.

Mortgage modifications are a product of negotiations between the borrower and lender and have to be agreed to by the two sides. Usually mortgage companies are amenable to discuss modifying loan policies when their is a chance the borrower will default. Often a lower regular payment is still more than your mortgage company may receive from a default sale of a property making lenders willing to negotiate smaller regular payments.

Depending on the specifics of your contract such as outstanding balance and current property worth your lender could be prepared to talk with you. - 32499

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