Preventing Your Home From Being Listed On Bank Foreclosure Listings

People who are facing foreclosure often do not realize that there are options to avoid foreclosure. Most often, they are at a loss on what to do. Sure, lots of advices are given by friends and family, but still, one is unsure what is the right thing to do. Indeed, nothing can be more devastating than when your home is on the bank foreclosure listings.

The foreclosure process can be very lengthy, time consuming and costly. This is the reason why lenders would rather negotiate a suitable settlement rather than take your home through a foreclosure. Lenders have several options available to homeowners facing foreclosure, however, these viable options must be talked out with your lender.

A few things homeowners can do:

Keep an open communication between you and your lender

Bank foreclosure listings

Photo Courtesy of B.T. Indrelunas via Flickr

Most people’s initial reaction to avoiding problems is by ignoring any form of communication. This is the worst thing that you can do especially when facing foreclosure. Showing the lender that you want to keep your home by cooperating with them will make things easier to resolve and may even make the lender more lenient.

Get help from counseling agencies

One of the important functions of the United States Department of Housing and Urban Development or HUD is to assist homeowners facing foreclosures by offering the services of HUD-approved housing counseling agency. These agencies help homeowners by offering advice and crucial information through government agencies and programs including private organizations.

Seek refinancing

One viable option to take when facing foreclosure is by refinancing your home. This means changing the terms of your existing loan by reconstructing the loan. This also means including the back payments to the loan balance. You may also want to consider taking out another loan at higher interest rate to pay off the mortgage loan that you originally took out. The US government has also joined with a group of mortgage lenders to assist financially-distressed homeowners. If your lender is included in this list, you’re in luck as you will have an easier time with the negotiation.

Putting your property up for sale

Selling your home with the help of a real estate agent or short-selling are two options that you may want to consider if mortgage payments have become impossible to do and you do not want to go through the foreclosure process. Foreclosure also damages your credit ratings and seeking financial help in the future will be difficult.

Opting for government-sponsored programs

The government has enacted various programs to help financially-distressed homeowners amidst these tough economic times, among them FHASecure, a program which offers homeowners the option to refinance their mortgage loan, with the government as the insurer.

Despite the difficult economic times, there is always a way for everyone to keep their homes from being listed on bank foreclosure listings. You can start by studying your options and by being open to negotiations.

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