Facing a foreclosure on you current mortgage can be an extremely trying situation. You have probably exhausted every possibility that you could think of to stop the mortgage foreclosure process, but all have failed to prevent it. So now you want pull yourself together and get through this problem as best you can.
First of all, try not to panic or feel guilty. You most likely did all that you could, and now is the time to regroup and be proactive in handling the problem. You may have more time and options than realize, credit-yogi can consult you about all of your options. The mortgage foreclosure process can take six to twelve months, so you can take a deep breath and try to approach the situation as calmly as you can.
You may be surprised to hear that your lender is not your enemy. Often times lenders really don’t like to go through the foreclosure process. The process is time consuming, and costs the lender money every day that nothing is being solved. Then if the property is foreclosed, the lender must now try to sell the property and recover what they can from the property. This is more difficult in a down market. Therefore, your lender should be quite open to working with you.
You can be proactive and contact your lender as soon as you realize that there is trouble coming. You can be completely open and honest with your lender, but you may want to seek second mortgage foreclosure help from a professional first, which you can explain your financial difficulties and the problems in your life that have brought this situation about. A credit-yogi advisor can help you with any attempts by the lender to contact you or to inform you of the status of the foreclosure process; tracking all phone calls and letters. This can help you face the situation openly and honestly, and give the lender no reason to mistrust you. It will also help your lender become aware that you are honestly trying your best to work your way through this difficult situation.
Trying to achieve a forbearance agreement with your mortgage company is also an option. In such an agreement they may agree to accept only interest payments until you can get back on your financial feet. Without help it may be unlikely that they will accept an attempt to modify the mortgage, but there are many third party advisors or lenders who may help you. Given changes in the home equity loan rates and the ability of these companies to adjust the term of the mortgage, you might be pleasantly surprised at how much such a company could help your situation. Ideally, you could be in a position to get a new mortgage after foreclosure.
If you cannot achieve a refinancing, perhaps because face a reverse mortgage foreclosure or your mortgage is upside down, talk to your advisors about the possibility of a short sale. While this is a losing proposition on the face of it, savings over the costs of riding the process out to the bitter end may make this an attractive option.