Lawmakers nationwide are debating on which new laws will most help foreclosure victims. Many different solutions have been presented, such as stopping foreclosures completely for one year, or placing more regulations on sub prime lending. Once a decision is made, there is no guarantee that it will even help existing foreclosure victim. Many laws being recommended are to prevent
future foreclosures and will offer no relief to homeowners currently in foreclosure.
If you are facing foreclosure and need help to stop foreclosure, you can take things into your own hands, or find help outside of new laws or government programs. Since the new laws may not even take effect and government programs can take months or years to provide assistance, you should search for other options to stop foreclosure.
Besides the obvious options of a foreclosure refinance or a foreclosure loan to pay the arrears, there are many other options that can help save your home from foreclosure. One of the most utilized methods is a loan modification or loan workout plan. A loan workout plan is when the lender allows a fixed period of time for you to pay the arrears. In most cases, you will pay the normal payment amount, plus an extra amount that is applied to your arrears. A loan modification is when the term of the loan and/or the interest rate is adjusted to make the payment more affordable. A loan modification, in many cases, is very similar to a refinance, because you can get a new lower rate and a new term for your loan.
Another option, that is only available when predatory lending has taken place, is to eliminate the arrears and begin the loan again, as if it were a brand new loan. This can happen when the lender wrote a fraudulent loan in the first place. We are seeing many cases where the lender is forced to forgive 100% of the arrears and begin a new loan with an affordable payment. This is a very new process and I don’t know of any other companies offering this process (outside of our company) but it has been very successful and has saved many homes from foreclosure.
If you are facing foreclosure or you are in fear of missing future payments, it’s important to stay in communications with your lender and seek help from a trained and qualified professional immediately. Many local governments provide free help and mortgage and real estate professionals can provide help at a very reasonable cost, so don’t waste time and get the help you need today!