Avoiding Foreclosure By Talking To The Lender

by Donald Hanz on Stop Foreclosures

Avoiding foreclosure is one of the toughest things to do especially because most of the times, homeowners who are served a foreclosure notice don’t know what to do. Actually there is a way out, which many homeowners are not aware of. When a foreclosure takes place then the home is repossessed by the lender through legal means. This means that the current homeowner will have to move out of his/her house and the property will be declared as bank foreclosures.

If the total worth of the home is less than the total amount of loan that has to be paid by the homeowner then there is a possibility of pursuing a deficiency judgment. Since deficiency judgments can affect the credit rating of a homeowner hence it needs to be avoided at all cost unless there is no other option. In the absence of any other option, the property will go into foreclosure and will be advertised in the foreclosure listings.

The first thing that you need to do as a homeowner is to accept the letters sent by the lender regarding missed payments. If you ignore them then it will certainly lead to foreclosure. If you feel that you are going to have or are having payment problems then get it touch with the Loss Mitigation Department as soon as possible. The second most important thing that you can do is stay at your property because if you leave it or vacate it then you will not qualify for assistance.

The third option is to get in touch with your lender. Based on your current financial situation, your lender will be able to work out a repayment plan that will help you to not only avoid foreclosure but also keep the home. This way your property will not be declared in the list of foreclosure homes and you will be able to make all the payments due.