When it comes to home loans, the presence of delinquent borrowers is not surprising. A lot of people will at some point either be temporarily or permanently incapacitated to pay off their home loans. In half of these cases, the house of the borrower might also be at risk of a foreclosure sale. The thought of losing a house that you have called home for a long period of time is depressing. The first thing that will come to your mind is, is there a way for me to avoid the foreclosure?
A looming foreclosure is not something that anyone would wish for their home. However, in the event of a sudden disease, the death of the wage earner, or even loss of a job may result in your home being listed for a foreclosure. Fortunately, there are a number of steps you can take to avoid being dug up in the foreclosure pit.
Request a financial loan modification
There are three main financial loan modification options:
- The IndyMac Plan: This is based on a 38% house to income (HTI) relation. If you qualify for this, your payment period will be increased to forty years and your interest will be lowered to less than 3%. You will be requested to pay one month before the program is rolled out.
- The Freddie Mac/Fannie Mae Program: In this method, your foreclosure will be eliminated through increase in the terms of payment and your mortgage loan interest rates will be reduced to less than 3%. If you qualify for this financial loan modification service, it will be a great assistance to you because you’ll be able to manage your mortgage loan payment options better.
- Streamlined Mortgage Modification Plan (SMP): This is the most popular loan modification option. Here you’re only required to pay the bank 38% of your gross regular earnings. However, the condition is that you must pay 3 sequential payments to start this program.
The method to save one’s home from a foreclosure depends on individual cases. A common recommendation is a forbearance which also depends on your qualification. All the options have their advantages and disadvantages and therefore you should request the help of a specialist to make the right decision.