Understanding Foreclosure. Best Practices for Consumers During Foreclosure Process.
Credit-yogi.com understands that facing a foreclosure on your home can be a painful and trying experience. It can be frustrating to know that all the payments you have made and your efforts have failed to stop the foreclosure process. The best thing you can do now is just to take a deep breath and face it as intelligently as you can, while you try to make the best of a bad situation.
Best Practices for Consumers During Foreclosure Process.
Unfortunately the foreclosure process will happen with or without your participation, so you may want to actively focus on developing a good strategy to get through it. Become familiar with all of the many steps in the foreclosure process, and contest each one at every opportunity. Credit-yogi can help you with this process. Even if you feel that your protests will be in vain, completing the processes involved in the protests can buy you valuable time.
The foreclosure process can take a great deal of time, often six to twelve months. You can use all of that time to your advantage by exploring every possibility to stopping foreclosure. It's a good idea to not even attempt to leave your house. It may be hard to find a new place to live with a foreclosure hanging on your financial records, and moving will not make any of this go away. The financial responsibility will follow you if you move, and will affect on your credit record for seven to ten years, depending on the laws of your state.
It’s ok to hold your ground, but you may also want to understand that the lender is not necessarily your enemy. Lenders have many reasons why they prefer not to foreclose. The process is lengthy and expensive for them, and they are losing money every day. Even when they eventually get the house, they must try to sell the property in a down market to get something back. They really don't like the process any more than you do. You can approach them as a partner. You can have an advisor get in contact with your lender as soon as you realize that there is a problem. The advisor can help show you how to stop foreclosures sale by being completely open and honest about your financial difficulties and your desire to make things right. It will not help to avoid phone calls or letters. Make every effort to be sure they know you are working with them, not against them. Many times this can lead to a forbearance, in which the lender will allow you to pay interest only until your financial situation improves.
Know The Law
You should pay attention to the foreclosure laws in your state, which credit-yogi can provide to you free of charge. Information should be available from a state service, or you could retain a lawyer. You must follow the laws according to your state, because there is no wiggle room. It is also important that you make sure that your lender is following these laws as well. With foreclosures reaching an all time high, many lenders are retaining services to pursue these foreclosures for them, and some of those services may not be on firm legal ground. If your lender or a representative of your lender violates foreclosure laws, they could surrender many of their rights to execute a full foreclosure. Hiring a lawyer might be particularly helpful if you suspect that this is happening is happening to you.
Find The Help You Need
Depending on your equity as well as other factors, you could immediately pursue a mortgage refinancing to help stop foreclosure. Your primary lender may not address this, but there are many third party lenders who could. They may offer surprisingly beneficial terms on a loan modification as an ideal outcome. When pursuing this, you can make sure that you account for all hidden costs such as homeowner association dues, liens, and tax liabilities. Your loan modification expert should help you make sure that all of these issues have been considered to help stop home foreclosure.
If all else fails, there is always bankruptcy to stop foreclosure. However, the laws on declaring bankruptcy have made the process much more difficult, and it will have long standing effects on your financial standing. If you decide to pursue this, a lawyer is definitely a good consideration. Credit-yogi.com can connect you with one free of charge.
No one can force you to leave your home until the courts rule that you must. Be sure to pursue all of your options. Sometimes there is government help to stop foreclosure depending on your mortgage type. You can use the foreclosure process to your advantage to buy time.