Many borrowers who are facing home loan foreclosure feel helpless in the face of the situation. They often think that there’s no other way to turn things around. But in fact there is. Yes, it is possible to stop home loan bank foreclosure and avoid losing your home.
Stop Repossession!
How can you stop a bank from gaining possession of your home property? The best thing to do is talk to your bank. When difficult circumstances arise that makes it difficult for you to pay off your monthly mortgage, notify your bank immediately. If you have been laid off from your job or if there has been a serious illness in the family, tell your bank why you won’t be able to keep up with your current monthly mortgage for the meantime. Banks do have foreclosure plans or stop repossession programs for customers who are going through tough times and you can avail of this help if your lenders know you need it.
Ask for Forbearance
One example of a foreclosure plan is re-instatement. A re-instatement allows the borrower to pay back his past due debts in full on a specific date. Along with a re-instatement option, you can also ask for Forbearance. This means that the bank won’t be foreclosing your home hastily as long as you are able to keep up with your re-instatement. This will buy you some time in obtaining the money you need to pay your mortgage.
Restructure Your Mortgage
You may also request from your lender that some adjustments be made on your terms of payment. Banks can make the necessary changes to re-structure your current mortgage to help the borrower obtain easier payment terms. Re-structuring or refinancing your mortgage is just like shifting to a new home loan with different payment terms without re-applying for a new mortgage loan. Banks do extend this option for those people who are facing foreclosure.
Talk To Your Lender Right Away
When you meet with your lender, explain the weight of your current financial state. Let your lender know that you are doing some measures to manage your finances correctly. If you have asked for a financial assistance from a family member, let your bank know as well. If your lender can see that you are doing everything you can to get out of the situation without defaulting on your mortgage loan, they will be willing to make some arrangements for you.
When confronted with hard times, hiding from your lenders will not do any good. Missing payments on your monthly mortgage loan will only damage your credit history. Don’t let bad credit ruin your credibility with your lenders. If you’re going to talk to your bank and ask forbearance when they have already filed foreclosure on your home, you’ll have a harder time convincing them to back off. Stop home loan foreclosure even before it happens by taking action right away.
