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Stopping Home Foreclosure


Date Posted: 11/13/2012 6:19:24 AM

Posted By: jwangari  Membership Level: Bronze  Total Points: 36

Home foreclosure is the last thing that a pre-home owner thinks about when acquiring a mortgage. This makes it very difficult for defaulters to accept their situation if served with a notice from the bank informing them of the looming danger should they continue not paying their periodic payments. Stopping home foreclosure can be quite a task especially if one is very far behind on the mortgage payments. However, it can still be done. All one needs is to be more dedicated and to think outside the box.

One of the ways to stop foreclosure is to look at all possibilities of finding the money. Fortunately, there are different ways of catching up on mortgage payments. Selling assets such as cars and jewellery is such an option. Borrowing from friends and family is another depending on the amount needed. One can also decide to sell the property to a third party to get enough money to pay the whole outstanding amounts plus all other future payments.

Once one has caught up with the mortgage payments, he should evaluate and know the reason why he defaulted in the first place. This may enable him to decide on the best way forward so as not to default again. If it is because his level of spending has increased considerably, he may decide to reduce the expenses if possible or find another source of income. This may be quite difficult but if one does not want the same thing to happen again, he has to make a few sacrifices for the remaining period. One may also decide to talk to the bank about extending the payment period hence reducing amount one has to pay monthly. This may happen if the loan is an adjustable loan and is entirely at the banks discretion as it depends

on their mortgage policies.

Potential home owners should know what they are getting into before acquiring a mortgage. Back-up plans must be made in case of any financial trouble. Borrowers should take immediate measures as soon as they start defaulting such as obtaining a second job to avoid having huge debts to pay.

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