Stop Bank Foreclosure

| November 5, 2011

What is bank foreclosure? When you take up a mortgage loan on your house it is like keep your house in the hands of the bank. You pay the installments and if one of the installments does not reach which can be due to various reasons then that is the first step to a foreclosure. Due to illness, accident or anything you may miss your loan installment for a month, the bank will send you a 30 day notice. If your miss that notice and the second installment, then a 60 days notice is levied upon you and this goes on till a 90 days notice as well. Once the 90 day period is over and you have still not paid the dues then the bank will conduct a foreclosure and seal your house and auction it. To stop bank foreclosure there are many measures you can take when you miss just one installment.

The best option of stopping the foreclosure is by taking up refinance. Refinancing is the option when you can take up a new loan with new interest rates and fulfill the existing loan amount. This way, you will be starting fresh and get back on track with the refinance.

The rate of interest changes for the good and you can be freed from the old loan on your house. This option is good as it will free your mind of the clogged up feelings of a loan on your head and the missed installment burden as well. Many people opt for this option as they find it the most suitable one.

A forbearance plan can be worked out with your bank or lender and this will stop a nearing foreclosure. The lender or bank may stop installments for you until you come back to your normal income and for this you may have to pay extra to the lender.

This will however make the possibility of a foreclosure from not happening. A pre-foreclosure sale is another option which you can work out with your lender or bank. You can sell your house and pay off the loan that possibly can go into a foreclosure. However you be bearing a loss by selling it early.

You can also select the option of selling the house to the lender or bank itself. This is again a very big loss for you but will save you from the trouble of the foreclosure proceedings and also save you from the insult among society.

You loose your house and a lot of money as well. This method is a mutual understanding method and both the sides, that is you and the lender or bank should agree on this method of repayment. To stop bank foreclosure, these methods are used in many cases.

To not miss a repayment, it is always good to buy a house which you can afford and pay the loan installments for. Be aware of your income and buy a house for which the installment won’t tax on your budget for the month.

Category: Home Loan

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