FORECLOSURE

1. What is foreclosure?
Home foreclosure is a process by which a lender regains a property, which they have financed. Typically, this is because the borrower or homeowner is late on mortgage payments and is unable to catch up, often due to circumstances outside of his or her control.

When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.

2. If I can’t pay my mortgage, why should I call my mortgage lender/collector?
In case you have trouble paying your mortgage, your mortgage lender can help you identify the options available to you.

3. What is a loan workout?
A loan workout is the process by which you can access a loan modification or a repayment plan.

4. What is a loan modification?
A loan modification occurs any time any term of the original loan contract is permanently altered.  This can involved a reduction in the interest rate, forgiveness of a portion of principal or extension of the maturity date of the loan.

5. What is a repayment plan?
A repayment plan allows the borrower to become current and catch up on missed payments that are appropriate to the borrower’s circumstances.

6. What can loss mitigation do for me?
The goal of loss mitigation is to work out an agreement between the homeowner and the lender that will stop foreclosure proceedings permanently. This allows the homeowner to stay in their home and protects their credit history.

7. How long do I have to act?
Time is of the essence when you are late on house payments. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. Under this circumstances time is definitely not your friend. Act now!

8. Several companies contacted me recently offering help. Who do I choose?
The truth is that there are many predatory companies and lawyers who are not what they appear to be. Most of them are companies interested in buying your house at big discount want to take you into bankruptcy or are companies that collect a consultation fee and then do nothing for you.

Open your eyes, be informed and choose!

Some companies have the most experienced and well-respected specialists in the industry, whose sole purpose is to save your house, not buy it, sell it, or send you into bankruptcy. Do your homework, check their reputation and give them a call, speak with one of the professionals, in fact some of them offer free consultation. Judge by yourself. 

9. Do I have enough time to stop foreclosure?
Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast.

There are foreclosure assistance companies that have stopped sales set for the next day but this is very risky and some lenders will not agree to it. 

You're best option is to take action immediately to stop foreclosure before it goes too far.

10. Should I file for bankruptcy to save my house?
No!  That usually doesn't work.  The American Bar Association has reported that 96% of homeowners who declare bankruptcy end up losing their home to foreclosure anyway. If you declare bankruptcy you will likely end up with both a bankruptcy and a foreclosure on your credit report.