| Home foreclosures are dreaded by home owners. No | | | | repayment plan, the lender might allow you to make |
| home owner ever planned to get into foreclosure. It is | | | | missed payments spread out for a longer period of |
| probably the last thing on his mind. | | | | time.o Changing the loan terms: The lender might |
| How do home owners get into foreclosures? | | | | change the loan terms like cutting interest rates or |
| Foreclosures are caused by home owners defaulting | | | | extending amortization period.o Make a new loan: |
| on their mortgage payments. This is caused by many | | | | some government provisions let house owners qualify |
| factors like:o Job loss or unemploymento Medical | | | | for another loan which will pay back the existing loan |
| emergencyo Death in the familyo Dispute with co- | | | | payments termed as partial payment. |
| owner/divorceo Excessive debt obligationso | | | | How to stop Foreclosure? |
| Unexpected expenses | | | | Once foreclosure has been filed, you have limited |
| The major issue in avoiding foreclosure is preventing | | | | options. So it is better to take adequate measure |
| the filing of a notice of default. If you know you are | | | | before foreclosure is filed on your property. Some of |
| going to default on your payments, you must call your | | | | your options are:o Sell your property: Consult real |
| lender. Do not put off or ignore letters from lender as | | | | estate agents to find about the value of your property. |
| doing this will make the situation worse. | | | | Full service brokers must be consulted.o Short Sale: |
| Depending on your situation, the lender might propose | | | | You might look at Short sale of your property if your |
| the following options:o Additional time to make your | | | | home is worth less than that you owe. A short sale |
| payments: this is a policy of forbearance in whichthe | | | | affects credit history bit is not as bad as |
| lender agrees to wait before taking action against you | | | | Foreclosure.o Sign a Deed in Lieu of Foreclosure: this is |
| and gives you more time to work out an affordable | | | | the process of giving back the deed to the lender. The |
| repayment plan.o Waiving a payment: Rarely this | | | | home owner gives the lender a notarized and |
| happens that the lender agrees to waive a payment | | | | prepared deed and the lender cancels foreclosure |
| or two.o Widening the time of payment: In a | | | | proceedings. |