Procrastination Is Causing Many Homeowners To Act Too Late To Stop Foreclosure

By: tireddadoffive


Human nature being what it is, it should come as no real surprise that a great number of people facing foreclosure fail to act until it is far too late. The question is why the delay when there are countless resources and services available? One could ponder this for days and likely come to any number of conclusions, all of which would likely be correct. People under duress seem to act emotionally instead of rationally. If you really boil it down the reasons most people delay are fear and ignorance.

Fear comes in great many guises. For a homeowner wanting to stop home foreclosure the fear of loss may be overwhelming which unfortunately doesn't always prompt one into action. Fear also causes indecision, which seems to be the case for people looking to avoid home foreclosure, yet spin their wheels without taking any action whatsoever. Ignorance of the foreclosure process and options to prevent a foreclosure is another reason people stay rooted in place for too long until it's too late.

The best advice I could give is to take action. Act now, not tomorrow or even next week. It sounds simple enough in theory, yet many people are still trapped in inaction, but the very act of taking any kind of positive step in the right direction makes the next step even easier to take.

Who should you contact first? The very first phone call you make should be your lender. This may seem intimidating as they are the very ones who warned you that your home is now in the foreclosure process. Try thinking about this in a different way, and put yourself in the place of the lender. They are concerned and probably a little bit afraid themselves because if you the homeowner, through your inaction, allow the lender to take the home back they are stuck with yet another property that they really don't want. This is the primary concern of every lender. Every instance of another foreclosure lessens their revenue stream, and this has a domino effect throughout not just the lender's company but the entire economy as well.

It may come as a surprise but most lenders will be happy you called, and not so they can blast you for getting behind on your mortgage payments in the first place. Remember, they want you to keep your home and many lenders will go to great lengths to work with you to make this happen.

Now that you've overcome your initial fear and contacted the lender it's time to go over some options available to stop foreclosure. The standard methods lenders uses when a person says they want to "save my home" are as follows:

Refinance the current loan – Given the current lending restrictions this may be the hardest option to accomplish. Refinancing for most people in the best of situations can be a long and difficult process and if you are already one or two payments behind on your mortgage that will make it all the more harder. One key element in a foreclosure situation is that the loan to value (LTV) requirements be met. Lenders are very strict about only refinancing when a LTV meets their guidelines. If your appraisal does not fall within the LTV guidelines that the lender has set then they will not underwrite your loan.

Loan modification - If you can currently make your regular payment, but you can't catch up with the past-due amount, the lender folds any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time.

Payment forbearance - Here you are allowed to pay the overdue amount, plus penalties and interest, over a specified period of time. Typically the past due amount is added to the end of the mortgage. Keep in mind the approval process for this option can take up to two months. If for whatever reason your repayment plan is rejected this is time wasted and the lender may not inform you have only a few days before your home is repossessed.

There are more exotic solutions, but the three stop foreclosure options stated above are the most commonly used. One thing I need to mention is you are going to have to prove to the lender that the situation that caused you to get behind in the first place has been rectified and you now have the ability to continue making your mortgage payments.

It is a sad fact that homeowners threatened with losing their homes due to foreclosure do not know what to do, when to do it, available options, and how the whole foreclosure process works. No family wants to face this situation, yet everyday in this country homes are foreclosed on that otherwise could have avoided the auction block if someone had simply taken the first step. Stressful situations affect people's motivation. We will perhaps never know, or understand, why some people will sit timidly by and allow their home to be lost while others take up the challenge and pursue every avenue available to stop foreclosure.


SaveMeFromForeClosure.com has earned its solid reputation by helping homeowners stop home foreclosure industry. Want to know how we can help you keep my home? Visit our website or call us at 1-888-472-8380 for a no-obligation consultation.