When a financial disaster hits, setting one back on his mortgage and leading to the threat of losing his home, the first thing to do is find out how to stop mortgage foreclosure.
Pittsfield, MA -- (SBWIRE) -- 08/15/2013 -- Fortunately, Real-estate-yogi.com is here to share its knowledge of this procedure, such as:
- Original Lenders
- HUD Aid
- Get Government Assistance
- Bankruptcy
Negotiate with Original Lender
One of the first things to do to stop mortgage foreclosure is go chat with the bank that holds the mortgage. Find out if there is a loan modification program or a refinancing option one can utilize. Modifying a mortgage simply means making some changes to it, such as lowering the principal of it or allowing a longer repayment period. Refinancing it pays off the original loan and creates a new one with a better rate and term. Either of these are excellent ways to prevent foreclosure.
Stop Mortgage Foreclosure, Free Online Help To Stop Foreclosure!
HUD can Help
The Department of Housing and Urban Development (HUD) has several options that stop foreclosure. One way in which HUD helps is by refinancing one’s mortgage into one with a very low interest rate. Through the Making Home Affordable Program (MHA), it can help by enacting the Principal Reduction Alternative (PRA). PRA encourages lenders to reduce the amount of principal on a mortgage by offering them enticing incentives. Also via MHA, an unemployed homeowner can receive assistance, and if an arrangement cannot be reached and the foreclosure goes forward, HUD can help with starting over.
Government Programs
Aside from HUD’s offerings, the federal government has other ways to stop mortgage foreclosure. The Obama Administration developed the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP) to assist homeowners who are having a hard time financially. Both programs effectively halt foreclosures, so be prepared to present proof of financial difficulty, earnings, and the original mortgage document when applying. Both of them can also be accessed at any participating lending establishment.
Filing for Bankruptcy
If all else fails and another solution can’t be found that addresses how to stop foreclosure, filing for personal bankruptcy can do it. This is an absolutely last resort, but it’s one that can keep one’s home in one’s possession. However, it only halts a foreclosure procedure is when it’s Chapter 13 bankruptcy, which is more like an extended repayment plan than a true bankruptcy. Chapter 13 allows a qualified homeowner the opportunity to work out a long-term repayment plan while still making his monthly mortgage payments plus all applicable fees.
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