options to help avoid Foreclosure

Despite the sense of helplessness, borrowers have options to help avoid Foreclosure. 

Especially, those who face the potential loss off their home for other reasons than a re-setting higher rate of the many sub-prime loans;

this includes borrowers who face  foreclosure as a result of such hardships as loss of job, divorce, illness, etc..

Most borrowers, never seek help for many reasons from embarrassment of the stigma of foreclosure or more commonly borrowers are simply unaware help is available.

Foremost,

contact your lender as soon as you know that you may have some trouble making ongoing loan payments. The more time you have before foreclosure, the better.

Here are some options about which you should speak with your lender should the dreaded "Foreclosure" word creep into your life. Don't worry help is out there.

• Lenders can exercise, "Forbearance" in which the bank will suspend payments for a period of time
• Banks are working with borrowers on repayment plans which will enable you to keep your home and pay back deficient amounts in the future
• banks are making loan modifications such as extending the period of the loan or a reduction in interest rate. In fact, Bank America plans $40 Billion in loan workouts for their clients and those of Countrywide Financial.
• In some cases, Banks will accept a "Deed-in-Lieu of Foreclosure"in which the bank takes the home back and you walk away without a foreclosure mark on your credit history.
• The most popular option today is the "Short sale" in which the bank will accept less than what is owed.

Important Note , regarding Short-sales: make sure you get pre-approval from you bank as not all banks will accept a short-sale. In fact, many banks would prefer foreclosure as PMI insurance covers much if not all of the deficit that could be lost in a short-sale.

Be aware of your options surround a potential foreclosure. Don't avoid what may inevitable. Don't be ashamed. You are not alone.

Contact your bank and/or your real estate professional to help you through a difficult , but manageable process.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Avoid Foreclosure -  contact your lender !*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.