Phung

With the record-setting number of home foreclosures occurring in the United States over the past few years it may come as a surprise to know that if you are having trouble making your monthly mortgage payments, you may be able to protect your home, but you must act immediately. The quicker you act the better your chances of preventing the loss of your home through foreclosure.

The absolute first step, regardless of all else, is contacting your mortgage lender. Do not procrastinate thinking they will treat you like some inferior person, or yell at you for getting into trouble in the first place. Mortgage lenders are not in business to foreclose on property. It is their best interest to work with you and help you find a way to keep your home. They are people with feelings just like yourself, and want to avoid this situation just like you do.

Be warned that the longer you wait, the more difficult you make it for the lender to help you. If you are three months behind in your mortgage payments and the lender has not heard from you, the company will feel justified in pursuing foreclosure. It is vitally important to take action right away to save your home from foreclosure and protect your credit record.

Before You Contact The Lender

In this case it pays to swallow your pride and be prepared to discuss your problem openly and in detail. The more information the lender has the better able they will be to help you. If you really wish to make a good impression and get things off on the right foot think about some questions you may be asked and answers ready. The lender will see you are prepared and sincere.

Ways The Lender Can Help

Depending on your unique situation there are many different ways in which your lender might be able to help you.

Debt Counseling If you have let your mortgage payment fall behind it stands to reason your other debts are in arrears too. Your lender can look at all your debt, see if it can be restructured, and help you make a spending plan and structure a repayment plan.

Payment Forbearance - If you have some equity in your home, it may be possible to rework your loan to lower the monthly payments for an extended period of time. The past-due amount could be added into the new loan.

Grace Period By taking prompt action the lender will, in most cases, give you extra time to get your problem under control. However, if you fail to communicate with the lender, and you fall behind on your mortgage payments, they have no choice but to pursue foreclosure.

Sell The Home - If you don't want to keep the home, or if the problem is so serious that it can not be resolved, it may be necessary for you to sell the home. Your goal is to sell the home and pay off both the mortgage balance and your delinquent debt, and thus avoid foreclosure. Be advised that a poor real estate market will limit this option.

Deed in Lieu of Foreclosure (Sign The Home Over To The Lender) - This is where you are unable to pay for the house and you voluntarily give the house back to the lender. Be warned that you still have to pay back any difference between what you owe and what the house resold for. Not every lender will always accept this arrangement.

Bankruptcy - This should only be used as a last resort because of the negative impact on your credit (up to ten years in some states). Keep in mind also that filing for bankruptcy is much more difficult these days due to new laws recently passed.

Questions The Lender May Ask

1.What caused you to fall behind your payments in the first place?
Bad things happen to good people. Be open about the situation that led to your problem, such as losing a job, a medical expense, increased homeowners insurance, higher property taxes, etc. Stick to the facts and don't embellish.

2.What is your current monthly income stream?
Include monthly income, disability, retirement, or welfare benefits; and savings and investments.

3.What other debt obligations and expenses do you have?
List only essential expenses and other current financial obligations. Stick to the necessities and forget the things you'd like to have. Be realistic. Include expenses such as food, utilities, loan or credit payments, insurance, child support, any other payment you are required to make.

4.What plans are you making to fix this problem?
Brainstorm how you can manage your problem now, and also over the long haul. Tell your lender right away about your problem even if you feel the situation is hopeless. There may be ways to obtain financial assistance. If not, you may still be able to reduce your losses and prevent foreclosure. Foreclosure can ruin your credit record for years, so it behooves you explore every avenue and possibility.

Both parties, you and the lender, desire to see a successful outcome in stopping foreclosure. The lender wants their money and you want to salvage your credit. Working together you and your lender may be able to come up with a workable plan that benefits both parties, but remember that nothing happens until you take action.

SaveMeFromForeclosure.com is a forerunner in the foreclosure prevention service industry, helping people to stop foreclosure and keep or sell their home. Our experience, along with our passion to help homeowners through this challenging time, set us apart from the competition. We only succeed if you are able to avoid and prevent foreclosure on your home with our assistance. Visit our website or call us at 1-888-472-8380 for a no-obligation consultation.