stop foreclosure include finding and using the methods of relief available through your lender. Of course you need to start dealing with your lender early enough to take advantage of the options that could be available if you want to stop foreclosure. Here is at least seven possible relief options your lender can pursue:
• Temporary Indulgence: To stop foreclosure this method gives the homeowner a period of time to bring their mortgage current, this period could be as long a two months. Here are few conditions that could allow a real option. For example, if the homeowner is refinancing their loan and is just waiting on a pending approval from the new lender. In this case they could issue a “Temporary indulgence “to give you time to stop foreclosure. Another reason why the lender could approve period of time is the homeowner who has a real estate sales contract to sell their home and need more time to do the closing. This would be a win, win situations.
• Liquidating Plan: This method the lender is trying to bring current the mortgage after the hardship has passed. With foreclosure stop and the borrower can now afford to pay a little more to the monthly mortgage payment. Lenders can now get creative with this method as long as the plan can accomplish it quickly and it is affordable for the homeowners.
• Special Forbearance: The goal here again is to stop foreclosure by giving the homeowners some relief for up to 18 moths without making payments. However, at the end of this period of time a “liquidating plan” goes into effect to help bring the mortgage current. However,to obtain this kind of relief you must be ready to document the reason for your temporary hardship. With the economy as it is today and with so many people laid off or reduction in income this could easily be documented. However, the lender as the last word and must be convinced the special forbearance will solve the problem in the long run and stop foreclosure. .
• Additionally there is a “long term special forbearance” which can even go up to 24 months
Some homeowners who want to stop foreclosure do not pursue the options available to them due to lack of understand to these options available with their lenders. Making a call at to your lender can often get some of these options explain or at least find how to locate it on their website. As usual don’t give up fighting foreclosure until you have tried every option available to you.
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