Stop Foreclosure Now! and How to Avoid the Foreclosure Process

by : Kevin Harbor

The number one reason homeowners facing foreclosure lose their home is because they fail to communicate with the lender. Most people in financial trouble do the same thing; stop answering the phone, stop opening the mail while trying to stick their heads in the sand. THIS IS NOT GOOD!

This does not make the problem go away. Don't keep being in denial. Let's face the problem head on. Now I know this sounds tremendously daunting, but it's not as hard as you might think.

As I have mentioned before in previous articles, the bank REALLY doesn't want to foreclose on your home. But if they can't get a hold of you, and your not responding to their correspondences. Heck, they don't even know if you live there anymore.

Ok, let's get back to how we start to resolve the problem. The first thing that you need to do is answer the telephone and have a conversation with your lender about what types of forbearance agreements that might be available to you.

Forbearance is an agreement that banks make with homeowners in which they agree to not foreclose on you in return for you accepting a payment arrangement or some other alternative to being foreclosed on.

The only way that you can get one of these forbearance agreements is to ask for it! Or at least be available for the bank to offer one to you.

Forbearance agreements range from:

*3 to 6 month grace periods with no payments and more importantly NO FORECLOSURE! (You get to keep your home)

*Loan modifications- they basically take the amount that you are behind and place it on the backend of your mortgage and extend your mortgage term.

*Monthly payment reduction. They'll lower your monthly payments if you can't afford the current one because you make less or your household income have been reduced..

There are a few more plans available to homeowners with the right hardship situation.

But remember that you have to make contact in order to get any help. Also, you must contact your mortgage companies loss mitigation department; customer services will do nothing for you.

Kevin Harbor, a licensed Realtor specializing in foreclosure prevention. He has been able to successfully negotiate alternative foreclosure workout plans for his clients.

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