How to avoid foreclosure on your home

Author: foreclosure, homeowner advice, financial information, loans, lenders, equity, market value, your home, Hudson Valley
Posted: Tuesday, January 05, 2010

It might not be the buzz-worthy topic it was a year ago, but the foreclosure crisis in the United States continues to hit homeowners. With between four and five million mortgages in America already in default, roughly one in eight American homeowners are showing signs of default and missing payments. But with some helpful tips and quick, decisive action, homeowners might be able to avoid the unthinkable. Here are some ways to avoid foreclosure.


Deal with your lender now


By calling your lender and tracking down the loan modification or foreclosure department, there’s a far greater chance of finding some sort of solution. Start by inquiring into modifying your loan. You might be able to move your debt to the end of the loan’s life or temporarily lower interest rate and payments until your financial situation rebounds.


Find equity in your home


By establishing what kind of market value your home might have, factoring in any liens placed on it and the costs of sale, you can find out if your home is even worth saving. Once you’ve calibrated all these factors, not to mention your own emotional attachment to the home, you may find that selling could be a reasonable alternative to foreclosure. 


Manage your loan yourself


Now that Americans are beginning to learn more about the lending industry, some companies have unveiled products to help users assess the risk of defaulting on their mortgage while empowering them to resolve their mortgage issues and modify their own loans.  One such product is eTurboMod, new do-it-yourself loan modification software that allows users to e-file and manage their loan and mortgage documents in order to save on costs and fees. Help videos and calendars make the process fast and easy. In fact, the company behind the product, We Save Homes Inc. (WESA), is so confident about the software it offers a money-back guarantee if a user's loan modification is not successful.


Other ways to stop foreclosure


Complicated as the lending industry can be, there are some helpful nuggets of information that not everyone knows about. For example, active military personnel and their families are actually protected from foreclosure. Bankruptcy can also immediately stem the foreclosure tide, but not without significantly hurting future credit. 

There is also the chance to see if the foreclosure itself is defective. If you’re willing to consult an attorney, you can find if your loan violated any laws or was subject to certain filing errors. 


“While some state and federal government officials are looking to fix the foreclosure crisis in the long term, homeowners can take a few small steps now towards avoiding the problem entirely,” points out Ryan Boyajian, president of We Save Homes, Inc.


Courtesy of Family Features

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