How to stop foreclosure II
Long term foreclosure solutions
In the last post we offered you short term foreclosure solutions. We hope they helped you to understand the scenario and think about working towards solving the problem. Now we present before you the part II of foreclosure solution. These solutions are for a long time perspective.
Mortgage Modification
Your lender can modify the mortgage that you have. This modification may be of various types. The lender may agree to add the past dues that you now could not pay, to your mortgage and then may finance them over a longer period. The lender can again modify the length of your loan so as to accommodate your lesser repayment capacity.
These modifications are useful in conditions wherein you cannot catch up with the past payments that are due or when you are not in a position to make the payments as you did earlier.
Selling Your Home
Sometimes, it may not be possible to catch up with the current mortgage. In such case, you can sell your home instead of a foreclosure. The lender will give you some time to sell your home by putting his foreclosure plan at hold.
Deed in Lieu of Foreclosure
You can give back your property to the lender and he will forgive the debt. This is done in the extreme case when you are no way able to repay the mortgage. This will have a negative impact on your credit. But the negative effect will be much lesser than the foreclosure. This is the step taken after you fail to sell your home. This is possible only when you do not have any other lien on the house.
