- Failure to make monthly loan payments
- Transferring your property ownership without the mortgage lender’s consent
- Violating terms and conditions of the loan documents
Stopping a home foreclosure
The following loan modification tips will help you stop the foreclosure process:
- a) Avoid panic: There is a wide range of assets in your house that you can trade for cash, for example, your cars.
- b) A late and missed payment: If the problems cannot be deferred then it is crucial to contact the lender to create an agreement before the foreclosure process is completed.
- c) You can also consider some workout options, such as:
- Loan modification – this one can be applied in the cases where there is a permanent or long-term financial hardship.
- Make some repayment plans where you will add an extra fee to your monthly payment until the missing money is recovered.
- You could try the reinstatement process where you bring your loan current, pay the late fees, and then proceed with the loan as before.
- Claiming bankruptcy also stops the foreclosure process as it hinders the lenders from collecting anything from you.
- You can opt for a forbearance plan where the lender will ease or even suspend your payments until you are current again.
- Deed in lieu is another option that can stop foreclosure by selling your house to the bank by financing your mortgage.
Consider the short sale option
A short sale is where the lender will accept less than the mortgage loan. It means that you will sell the house for a lesser amount than its worth. You can solve the problem of foreclosure this way but with some losses of course.
Otherwise, if the situation is irredeemable, consider selling the property before it gets to the point of foreclosure. Nevertheless, remember to seek foreclosure assistance by engaging a loan modification consultant.