There is little doubt that the earlier you act, the more options you have in gaining a solution that keeps you in the home. In many cases, home owners are aware well in advance that making the mortgage payments will become impossible, yet they wait until the payment is actually due before taking any action.
By taking action as soon as you know that making mortgage payments will be difficult to impossible, the number of options opens up tremendously. Depending on the circumstances, here are just a few ways that you can obtain foreclosure assistance:
1. Skip a Payment: Many lenders will allow for a payment to be skipped if the situation is temporary, such as an unexpected medical bill or payment. A month is added to the mortgage, but
2. Short Sale: If the mortgage situation cannot be resolved due to a permanent loss of income, then a short sale may be the only solution. A short sale is where the owners put up the home for the price that is generally what is left owed on the mortgage. While the home itself is sold, the owners do not incur any credit or financial penalty on their record since they never defaulted on the loan.
Celebrity Loan Modifications
One of the most talked about courses of action to take is known as celebrity loan modifications. These particular modifications can help restructure the mortgage and keep you in the home. Used at first for the very wealthy, these types of modifications have now spread to the middle class where they can take advantage of new methods of restructuring their mortgage.
The celebrity loan modification is based on the principle that lenders have as much to lose as home owners. Therefore a solution that benefits the owners by keeping them in the home and the lender by the continuing payment of the mortgage is found. The adage “too big to fail” comes to mind when discussing the power of the celebrity loan.
Remember that it is in the interest of the lender to keep you in the home as well to keep making the payments. For the lender, foreclosing means having to re-sell the property which may take months or longer depending on the situation and losing thousands of dollars.
For home owners facing the prospect of foreclosure, there are solutions available including the celebrity loan modifications that can save the property without having to file for bankruptcy.