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Opportunities to Stop a Home Foreclosure

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By : Leticia Carvalho    99 or more times read
To stop foreclosures is indeed very difficult for anyone to do, but ways to prevent it are never-ending which is, of course, good for the homeowners.

The 3 options to stop foreclosures are the following:

  • Special Forbearance

    This option allows the lender to create a payment reconstruction depending on the homeowner’s financial standing. It also allows the lender to reduce the monthly payments or to postpone them for a couple of months.

    To qualify for Special Forbearance, a homeowner must be unemployed or anything that caused a big financial loss. A proof must be shown for review or compose a Hardship Letter to Stop Foreclosure.

  • Mortgage Loan Modification

    Refinancing a mortgage can be made with this option to stop a home foreclosure. Mortgage rates can be lowered or a longer payment term can be done, whatever is more favorable for a homeowner.

    To qualify for this option, a homeowner should have just recently recovered from a difficult financial situation. It depends on the owner’s recent financial standing and if he is already capable of paying for the newly adjusted mortgage payment.

  • Partial Claim

    Through this option, lenders can apply the payment which came from the FHA Insurance fund or the US Department of Housing and Urban Development (HUD) on the homeowner’s behalf. The said payment will be the overall amount that is needed in order for the payments in mortgage to be updated which is the best way to stop a foreclosure.

    To qualify for this option, a homeowner should be 120 days behind with payments, but not over 360 days. The owner must also give an assurance that he can already make the payment after this option has been applied.

    With Partial Claim, a promissory note with the indicated amount will have to be signed so as to keep the homeowner’s payments updated, thus helping to avoid foreclosure. A home lien is going to be put on the owner’s house while he is making the payments.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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