The Best Methods For Foreclosure Prevention
January 3, 2008
The US housing market has taken a tumble and millions of homeowners may be facing foreclosure within the next year or two. What can these people do to avoid that?
For homeowners in situations that could lead to future foreclosure, the U.S. Department of Housing and Urban Development (HUD) can offer some important tips to help avoid foreclosure. These can be found at: www.hud.gov/foreclosure/index.cfm
Military personnel as well as some other government employees who are on active duty status can find assistance under the Soldiers and Sailors Relief Act. This act provides many useful and beneficial options for those who need help with mortgage payments.
Veterans who may be facing foreclosure can find assistance and information at: www.homeloans.va.gov/ondemand_vets_stream_video.htm
In addition to the above, there are numerous learning centers and consumer protection groups who can offer a wealth of information on how to avoid foreclosure.
Some people may wonder just how mortgage delinquency works.
All lenders will have their own policies but in general a mortgage payment is considered late if the lender receives it after the due date that was assigned on the mortgage contract.
Serious consequences usually begin when a payment is more than 15 days late, but this can often be forestalled if the homeowner contacts the lender ahead of time. If contact is not made with the lender, other problems begin to form.
If payment is not received by 15 days late the lender normally charges a late payment fee. This fee will vary from one lender to another.
If payment is still not made and there are two or more payments due, the lender may opt to add more late fees and require that the loan be brought up to date before accepting another smaller payment.
Once the payments hit the three non-payment mark, the lender may turn the matter over to an attorney and foreclosure proceedings may begin at this time.
In addition, the lender may require that the entire balance of the loan be payable immediately. In addition to the loan payments due, the owner is liable for legal fees incurred by the lender. It is normally at this point that the home owner is in real danger of losing the home to foreclosure.
As you might imagine there are many reasons for people to fall behind in their payments, illness, death of a breadwinner, loss of job are a few, but another real reason people are losing their homes is due to poor planning and excessive credit card debt.
This has been especially true in the sub-prime markets where adjustable rate mortgages are beginning to kick in with higher interest rates. Many of those who will be losing their homes simply did not plan ahead for the higher payments. If you are in such a situation and you still have time before your new rates begin, why not take some time and begin to plan out how you are going to come up with the extra money that will be needed for the monthly payments now. You may save yourself and your family a lot of hardship by doing so