5 Effective Steps to Stop the Foreclosure of Your Home

In this write up, we shall be discussing the five most effective steps to stop the foreclosure of your home. Foreclosure, as we all know is a process initiated by your lender, mortgagee or any other agency in lien with the property to possess or sale the said property which was used as collateral during the initial collection of a loan. This foreclosure proceeding can only be initiated when the borrower or mortgagor defaults in a consensually agreed repayment plan. This default in the consensually agreed repayment plan more often than not is as a result of circumstances that were not foreseen when the mortgagor went into the original agreement with the mortgagee. The lender/mortgagee, who is in this business for maximum profit and minimum loss will swiftly swing into the foreclosure machinery as soon as you default in your loan repayment. This will happen most especially if they have considered all other options and determined that a foreclosure action will yield the minimum loss for them. A successful foreclosure action will see you lose your home and I am sure no home owner wants this to happen, so what you should do is to exploit all possible means that will ensure that you prevent or stop the foreclosure from successfully taking place. Now, let's consider these 5 effective steps to stop the foreclosure of your home.

o Ensure that you carefully read all the communications that comes from your lender; start to take action as soon as a foreclosure notice is served you. Time is of essence, so the earlier you start to act the better it is and the more chance of preventing the foreclosure of your home that you will have. It will cost the mortgagee money to fully implement any foreclosure action, so in other words they will prefer a situation where both of you resolve the situation in a way that it will suit both parties.

o You can meet them and iron out a new repayment plan, depending on the circumstances surrounding the foreclosure action, there should be a high possibility for the modification of the original mortgage agreement. Assuming the reason for the default in your repayment is due to a significant decrease in income, then you can get your mortgagee to reduce your monthly loan repayment amount to suit your present financial condition and also possibly reduce the interest rate. Note: For this mortgage modification to take place, you must be able to convince your mortgagee beyond any reasonable doubt that you can sustain the new plan to be fashioned out.

o You can choose to refinance your mortgage, that is, get a second loan from another lender and use it to completely service the remaining amount on the first loan. While entering the second loan agreement, you should be able to strike a deal that suits your present financial situation. This way you can have a fresh start and still retain your home.

o You can ask for reinstatement or forbearance, that is, a situation where your lender agrees to give you a specific period in which you will not have to repay your loan and it will not be considered as loan defaulting. This is the most appropriate option to choose if you are suffering from a temporary financial setback, as soon as you get back on your fit you will be required to pay up the loan arrears and also continue with your scheduled monthly repayment plan.

o You can apply for extension of the law day or sale day. Since you have every legal right as the owner of the property from the judgment day to the law day or sale day, you can easily apply for this day to be extended. You can easily get this done if you come up with any genuine reason such as a plan that will help you to get money to redeem the property within the extension time span.

There are numerous other ways to effectively stop the foreclosure of your house including qualification for foreclosure protection from the government or any of its agencies. However, in my opinion, if you do not qualify for the government or any of its agencies to help you or even qualify for any other program to help you, then you should endeavor to take advantage of the above 5 effective steps to stop the foreclosure of your home.

Have your lenders served you a foreclosure notice or is foreclosure looming because you have defaulted in your agreed monthly loan repayment schedule? There is no need to panic, all you need is to get acquainted with these proven squidoo.com/steps-to-stop-foreclosure steps to stop foreclosure. No matter how far the foreclosure proceeding has gone, you should still exploit these proven squidoo.com/steps-to-stop-foreclosure steps to stop foreclosure