Charlotte, NC (PressExposure) April 13, 2008 -- It has been all over the news lately that bad mortgage practices for the past few years are now leading to foreclosures at an alarming rate. When people get bad mortgages, or mortgages they really cannot afford, it is inevitable that somewhere down the road they will have difficulty in making their mortgage payments.
When a homeowner has a hardship that causes them to get behind in their mortgage payments the lender is usually not willing to work out a suitable means for the client to get caught up. It doesnât take long for the banks to get impatient and begin calling their home every day demanding to know when they will start making payments again. Itâs almost as if the bank thinks that threatening them will magically improve their financial situation. And in most cases the bank will not work with the home owner until they are forced to.
Typically what happens is the lender will demand all of the arrears plus all of the late fees, and delinquent charges to stop the foreclosure. This situation leaves the homeowner with few options if they are unable to come up with all of the funds. Seldom can a homeowner find the extra cash to save the home in this fashion and they donât realize that there are several options to foreclosure and some are better known than others.
Selling The Home:
Selling the home is a possibility, but there is the chance that the home will not sell in a timely fashion. If this is the case, a homeowner is often approached by someone offering to purchase the property on a "short sale". This is typically done by Real Estate Agents or Investors who often advertise their services as foreclosure prevention services. Purchasing properties on short sale is becoming a very popular way for investors to obtain prime properties at discounted prices. It usually robs the owner of all of the equity they have in the home, leaving them with no money to get into another home.
Filing Bankruptcy is an option that is sometimes advertised as foreclosure prevention and while itâs true that bankruptcy may stop the foreclosure sale, it is ineffective as a real solution. In a Chapter 13 Bankruptcy, a lender could refuse to accept the terms of the bankruptcy, which will not benefit the home owner. Also the Bankruptcy payments could be higher than the original payments, which will not benefit the home owner.
Loss Mitigation is a little known process of saving a home from foreclosure. When a hardship has occurred and has been resolved, Loss Mitigation can be the most effective means of avoiding or stopping foreclosure. Simply put, Loss Mitigation is an intervention program wherein the lender is willing to work out an agreement that will allow a homeowner to continue making payments, keep the home and not come up with all of the past arrears.
But in order to stop the foreclosure process the homeowner must act right away. When it comes to foreclosure prevention one of the best things to do is find a foreclosure prevention specialist. This is someone who is specifically trained in this area and who is going to be able to help you out in this situation, regardless of your credit situation.
There are 47 different ways to mitigate a case to prevent foreclosure. American Home Savers, through US Loss Mitigation, has been successfully saving homes for 19 years. To learn more about Loss Mitigation, visit [http://www.AmericanHomeSavers.info] or call 888-384-4309.