Trying to Stop a Foreclosure

Posted on June 30th, 2009 by saman

Something you can do to stop foreclosure is try and refinance your home, if possible do it with the lender that gave you the mortgage if it is a bank. This is called loan modification and is done through the loan mitigation department. If you are already behind in any payments, see if they will add them on to the new loan. If they do not want to work with you there are companies that will unless you have been out of work for some time and cannot afford any type of payment then it might be best to try for a short sale.

Make sure if you have to go to a finance company that they belong to the BBB or Better Business Bureau, there are several listed on the internet. Call your lender or bank and ask to speak to the Loss Mitigation department, insist on speaking to the supervisor, do not take no for an answer, however, be polite and make an appointment to go in and have a talk. Do not give to many details over the phone, just what you have to. Have information that you need ready so you do not waste their time or yours when they ask for pertinent information such as a loan number. Tell the person that you are talking to that you need to save your home and want loan modification. When you make your appointment at the bank ask what you will need to bring and ask for details as you do not want to go back and forth. What you will need is probably going to be something like this, your tax returns for the last two or three years, bank statements for several months back, pay stubs for several months and a statement giving income and expenses; you can ask them how to make it out.

Included should be a hardship letter This is a letter explaining just why you are no longer in a financial position to meet your obligations at the bank. Give them as much information as possible and do not be embarrassed. This is nothing to them and its all part of their business; they have seen many hardship letters. You really need proof of everything you have to say in the letter so bring it with you. If you had sudden extreme medical obligations make copies of the bills and bring them. If you are out of work and have no source of income you may not get the loan modification. You can then try for a short sale. HUD has a guide for stopping foreclosure on the internet.

Time is of the utmost importance if you think you are going into foreclosed. Facing the situation will help you stop it. Be sure and read all letters that are sent to you. Do not make the mistake of thinking you know what they say and ignoring them. Whatever you do try and stop the filing of a Notice of Default.