How_to_Avoid_Foreclosure-- Gennady Litvin of Litvin Law Firm

How to Avoid Foreclosure

A foreclosure may occur if you are struggling to keep up with your mortgage payments or not paying the property taxes on your home. Foreclosure is one of the legal means your lender can use against you to repossess or take over your home. This can greatly affect your ability to qualify for credit in the future. Therefore, it is important that you stop this from happening and avoid foreclosure. So, here are a few steps you can follow, to avoid foreclosure:

Pay Attention to the Letters from Your Lender or Creditor

If you are unable to make your payments on time, then write or call your lender’s Loss Mitigation Department without delay. Provide them all the necessary information they require, including your financial information, such as your monthly expenses and income. If you do not provide the relevant information, they might not be able to help you.

Stay in Your Home: Do Not Abandon Your Property

People usually make the mistake of shifting to another place, such as a friend’s home, for a short period of time. This will only create more problems for you. So, it is advised that you stay in your home, because if you abandon your property, you may not qualify for any assistance regarding foreclosure.

Contact a Housing Counseling Agency

Contact an HUD-approved housing counseling agency, as these agencies are valuable resources, and can help you with your situation. These agencies have legit information regarding the services and programs offered by the government as well as private community organizations that could help you. A housing counseling agency, may also offer you a credit counseling service, which is usually free of charge.

Other Alternatives

If the steps mentioned above do not work out well, you can follow the alternatives mentioned below:

·         Mortgage Modification – You can try for a mortgage modification and extend the term of your mortgage loan or refinance the debt. Therefore, this will help you catch up with your monthly mortgage payments by reducing the amount to an affordable level. If you have any complaints with the modification, you can even contact a professional attorney.

·         Special Forbearance – Arrange a meeting with your lender and discuss your financial situation and problems. If you are lucky, your lender might create a repayment plan according to your financial situation and even provide for a temporary reduction or suspension of your payments for a few months.

·         Pre-Foreclosure Sale – This will allow you to avoid any foreclosure procedures by selling your house for an amount which is lower than the amount needed for paying off your mortgage. To qualify, your loan should be at least 2 months delinquent, and you should be able to sell your home within 3 to 5 months.

·         Partial Claim – Your lender may work with you to obtain a one-time payment from your insurance company to bring your mortgage current. To qualify, your loan should be at least 4 months delinquent and you should not be able to make full mortgage payments.

These are the steps you can follow to avoid foreclosure. If you find this to be too much of a hassle, contact Litvin Law Firm, we specialize in foreclosure cases and we will help you save your home. Or if you are looking to hire a lawyer, you should contact Gennady Litvin, a foreclosure attorney who will ensure your rights and your interests are safe and protected.