Should You Apply for a Stop Foreclosure Loan?

The current economy puts many people in danger of facing foreclosure. Even a Nationstar mortgage foreclosure can cause frustration and aggravation as homeowners face the possibility of losing their homes. It’s something they must face, but fortunately there are options: they don’t have to face it alone. Read more here to stop mortgage foreclosure .

Government Programs

Are you aware there are government programs to stop foreclosure? Even those who know about options tend to forget when they are faced with foreclosure. This is why you want to conduct research before you need the help because if and when that day comes you will not be in a frame of mind to think about it. The most common program for helping prevent foreclosure is loan modification (commonly known as Home Affordable Modification Program or HAMP). This program started in the spring of 2009 to help homeowners who were facing foreclosure remain in their homes. Some of the qualifications for the program include:

• Homeowner must be able to prove he has the financial ability to make the new modified payments
• Homeowner must be able to provide documentation of income
• Home must have been purchased on or before January 1, 2009
• Homeowner cannot have any convictions for fraud or money laundering involving real estate over the past ten years
• Home must be in foreclosure or danger or being in foreclosure due to homeowner’s financial situation (this means the program is not designed for those who are simply seeking to reduce their payments without justifiable cause)

 

This program was very timely and a godsend for my brother-in-law. He was forced to take a pay cut to keep his job and was having difficulty making his mortgage payments. This program helped him keep his home by lowering his payments to a manageable level. If you need help with modification or other foreclosure options visit Credit-Yogi.com and fill out the online form. A foreclosure expert will contact you shortly.

 

Applying for a Loan

 

While you can certainly apply for a stop foreclosure loan, why would you want to do that? You are already having difficulty making your mortgage payments; what would be the purpose of taking on another loan that you probably can’t afford to pay? While it may prevent foreclosure—for now—the future is uncertain.

 

Can You Lose Your Home in a Second Mortgage

 

One of the problems that face many people is dealing with second mortgages. While there are second mortgage foreclosure laws, homeowners don’t usually think to research them until after something happens. Think about it: you don’t plan to have financial problems and have to miss payments, so there doesn’t seem to be a reason to conduct any research at that time. The reality is you can lose your home if you default on a second mortgage even if you are up to date on your primary mortgage.

 

Stop Foreclosure Now

I’ve never entirely understood what a reverse mortgage is, have you? I know that they’re meant for people over 62, but I’m not sure why someone would want to have one. What’s the point of them? And is there such a thing as reverse mortgage foreclosure? According to an article referred to me by Credit-yogi.com, a reverse mortgage allows folks older than 62 to borrow money against their homes’ value which they don’t have to pay back. The point is to give these people some money to have fun with or fix the roof with or what have you. Sounds reasonable to me, but can a reverse mortgage be foreclosed on? Yes, it can be. As with a regular mortgage, a reverse mortgage has fees.  Origination fees and loan servicing costs are just two of them; talk with your lender about others that are attached to your reverse mortgage. You also need to know if your mortgage has a fixed or variable interest rate; if it’s variable, the nice payment now could increase as rates change. Know, too, that the principal and interest on your reverse mortgage increase as you borrow more against your house’s value. This can make your payment go up over time.

A truthful, upfront lender will tell you that a reverse mortgage can be foreclosed on if you can’t keep up with the monthly fees and interest rates. I guess in that way, a reverse mortgage isn’t so different from a regular one. Unfortunately, late payments on your mortgage and foreclosures often go hand-in-hand. Banks and other financial institutions don’t like foreclosing because it costs them money, but they also cannot let a homeowner live in a house he isn’t able to pay for. Only after sending a Notice of Default can a lender begin the stop foreclosure process. There are, however, ways to get a loan to stop foreclosure before it is completed. Apply for a refinance loan of for loan modification through your lender. These can be done in-house if your bank has such a program. Another possible solution to the question “how can you stop foreclosure” is to turn to the government. The Obama administration developed the HAMP and HARP plans to help troubled homeowners keep their homes. Apply for these federal aids through your credit union or other financial institution.

If you’d like more information on the topic of foreclosure prevention, contact a well-established consumer resource website such as Credit-yogi. These fine folks have the power of over 260,000 professionals schooled in issues of finance and law behind them and can of exceptional assistance to anyone seeking answers in these areas. Give them a call at 866-964-9644. You’ll thank yourself for it.