Insider Tips on How to Avoid Foreclosure

April 13, 2010 - PRLog -- Instead, all it means is that you need to get creative and think about your options. You can definitely keep your home if you know whom to talk to and what avenues to take. The following are some effective insider tips on how to stop foreclosure.

Aurora Lillo Editor of the "Best Loan Modification Companies" website -- http://www.BestLoanModificationCompanies.com -- pointed out;


Talk to Banks

“…One of the first things you should do is reach out to your bank. Ask them for more time on your home loan payments and explain that you have fallen on some rough times. This bank may be willing to offer you some leniency as long as you show that you do want to turn this situation around and are working on doing exactly this…”

Loan Modification

Often, lenders are open to altering the terms of your loan if you show that you do want to make payments but may need the amount lessened. Be open and honest with lenders so that they understand your financial situation. Often, they will take pity on you not just because they like you but because the foreclosure process often costs them a lot of money. Talk to the bank as early as possible if you want to avoid foreclosure. This is a chance to lower your interest rates or to change the terms of your loan so that it becomes more affordable.

Bankruptcy

A last ditch effort to stop foreclosure involves filing for Chapter 13 bankruptcy. This option is for people who have tried all other methods and need time to really organize their finances. Once you file for this type of bankruptcy, foreclosure will stop, at least for a time. This will give you the time to reorganize your debts so that you can work out payment plans with credit card companies and other lenders.

“…Take a good hard look at your finances and work on fixing this situation fast. The earlier you reach out to your lending institution and the earlier you work out a solid budget, the faster and easier it will be to work out a win-win compromise. Everyone can fall on hard times. The important thing is to keep your head up so that you can remedy this situation fast. Be honest with yourself about your income and your bills so that you can prioritize which are most important. Don't let the home of your dreams get away because you didn't act fast enough or ask for help. The above tips are sure to help you stop foreclosure…” added A. Lillo.

Further information about how to get professional assistance with a mortgage loan modification by http://www.BestLoanModificationCompanies.com