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Ask Shop Rate: Anita D., CA

Posted by  on Apr 16, 2009
 
My home is currently in the first stages of foreclosure - my credit is ruined and I cannot refinance. The mortgage company has denied my financial hardship application. What can I do? Is there a specific timeline here? The most important thing you can do is stay in constant contact with your mortgage lender. There are possible alternatives you can try, and you should exhaust all means to prevent this from happening. You could try: Special Forebearance where lenders are willing to reduce or suspend payments for a short period of time, a Repayment plan, where a lender allows you to make payments over a period of time which includes current amount due and a portion of the amount in default until the debt is paid. Mortgage modification can be implemented which will allow to refinance the existing mortgage in order to extend the term of the loan and possibly reduce your monthly payments. If you qualify for a Partial claim with an interest free loan from HUD used in order to bring your payments current, or you can place your home for sale, using the profits to pay off the loan, avoid foreclosure and salvage your credit. A last case scenario is the Deed-in-lieu of foreclosure which allows you to give back your property to your lender.

The mortgage lender, typically and considering the current housing and real estate market, does not want to foreclose on your property. See if you can work together with them to find an alternative solution to a foreclosure.


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