Times are such that homeowners who are facing the brunt of recession, are now resigned to the fact that they cannot meet their mortgages every month. Financial difficulties have made it difficult for them to meet their commitment every month, resulting in their homes being listed in the foreclosure notice. As the saying goes there are fixes to almost everything in this world. Foreclosures too can be stopped or avoided provided the home owner takes the following immediate steps to stop foreclosure.
1. Receiving a 'Notice of Default' is a legal process by which a lender is taking recourse to legal action to protect his assets i.e. your home when you signed on the mortgage papers. Therefore it is but natural you notify your lender that you may not be able to make the payments and apprise him of the situation once you realise it. That is the first step to gaining the confidence of the lender.
2. By taking the lender into confidence chances are that he might reconsider and let you off the hook for a portion or all of the missed payment. This is known as forbearance and is one way of stopping foreclosure. This would mean that the lender opts to give you more time to repay your loan or has devised ways to revise your loan agreement.
3. Some lenders are generous enough to lessen your mortgage burden by decreasing the amount and increasing the term period so that it becomes easy for you to meet your mortgage commitments.
4. Do not be ashamed but make it a point to be upfront about your problems which will then prompt the lender to decrease your present interest rate if you have an adjustable rate mortgage. This could be frozen so that you won't face a higher rate in the future. The lender could even agree to lower the interest rate and make it more affordable for you.
