| Lenders are usually willing to avoid home foreclosure; | | | | a way that makes it more affordable for you, such as |
| all you have to do is call. | | | | converting a 15 year loan to a 30 year loan. |
| The booming real estate market of the last five years | | | | * If your home is insured by the department of Housing |
| has come at a bad time for many would-be | | | | and Urban Development or the FHA, you may have |
| homeowners. Stocks are down, employment is | | | | recourse through them. Both departments have |
| uncertain and everyone who used to invest in stocks | | | | insurance that can offer you a one-time opportunity to |
| is now investing in real estate. This has driven prices to | | | | catch up on your delinquent payments. Contact them |
| previously unknown levels when many people just | | | | for details. |
| want a place to live. Despite the introduction of risky | | | | * With the rapid increase in home prices, you may |
| option ARM mortgages, many buyers are struggling to | | | | discover that you have far more equity in your home |
| make their house payments. This has led to an | | | | than you previously thought. This may provide a great |
| increase in home foreclosures, as employment | | | | opportunity to sell the home at a profit. You can pay |
| uncertainties and risky lending practices have clashed. | | | | off your existing mortgage and possibly have money |
| Who gets hurt? The homeowner who loses his or her | | | | left over for a down payment on another property. |
| home. How can this be avoided? | | | | * Your lender may simply be willing to take the |
| Contrary to the plots of old movies, most mortgage | | | | property back and sell it. This is a different and |
| companies are not vultures who are eager to throw | | | | separate process for foreclosing, which would forcibly |
| families out of their homes. On the contrary, most | | | | evict you from your home and tarnish your credit |
| lenders find it a tremendous burden to initiate | | | | record for years. In this scenario, the bank or mortgage |
| foreclosure proceedings against a customer. In fact, | | | | company would simply take back the deed and sell |
| most will go to great lengths to avoid it. Lenders | | | | the home. This isn't the ideal solution, but it is a better |
| understand that occasional financial problems arise for | | | | choice than bankruptcy. |
| most everyone, and they will often be willing to work | | | | Whatever you do, be sure to avoid the companies |
| out some sort of compromise solution to any problems | | | | that advertise that they offer foreclosure help. While |
| you may encounter. | | | | they may sound well-meaning, these companies are |
| Here are a few options you may have if you find | | | | really run by scam artists that have no intention of |
| yourself unable to meet your mortgage payments: | | | | helping you. What they want is for you to sign over |
| * Your lender may agree to allow you to stop making | | | | your property to them so that they can pocket |
| payments for a short period of time, or add the | | | | whatever equity you may have acquired over the |
| payments to the back end of your loan. They may | | | | years. That is the last thing you want. |
| also offer to restructure or refinance your mortgage in | | | | |