If you find yourself caught in a mortgage that you can no longer afford, you may need to find help to prevent foreclosure. The recent subprime mortgage crisis has prompted many local, federal and privately run agencies to develop programs that help to prevent foreclosure. Subprime mortgages are offered to borrowers with a few blemishes on their credit record that can’t qualify for prime rates. Usually offered with a limited time “teaser” rate that is significantly lower than the actual rate, these subprime mortgages cause many borrowers to find themselves with a mortgage that they can’t afford when the teaser period runs out. These are the borrowers that are looking for help to prevent foreclosure. Many times, these borrowers are not told of the actual cost of the mortgage until it is too late, making them victims of predatory lending.
The best place to start your information search for help to prevent foreclosure is your lender. Lenders have a lot at stake when a home goes into foreclosure. Research shows that a lender loses, on average, between fifty to sixty thousand dollars for each foreclosure. They are in the business of lending money, not owning or selling houses. They have many programs set in place to help you when you get behind in your payments. Never ignore communication from your lender. As they are willing to help and have many programs available to do so, most programs are designed to help those that are only 1-2 payments behind. Early intervention may be the difference between keeping your house and foreclosure.
The US Department of Housing and Urban Development (HUD) is the federal agency responsible for offering help to prevent foreclosure. Their web site if full of information, tips and advice to help prevent foreclosure. Because you can customize your search based on location, this web site is the most comprehensive place to find the help you are looking for. They also offer counseling by local HUD approved financial counselors. These counselors are able to evaluate your individual situation and make recommendations on their findings. They also provide local resources, such as county specific help to prevent foreclosure.
It is important when faced with a mortgage that you can no longer afford that you seek help to prevent foreclosure early. As there are many programs that have been developed to assist you, many can only be implemented before you get too far behind. Be sure to conduct thorough research before committing to any one program. Finding the help to prevent foreclosure that will suit your situation is possible, but you must be willing to do the research it takes to find it.
There are many companies that offer to help stop foreclosure. Most are legitimate companies that are able to help the foreclosure process. There are others that are looking to prey on you when you are weak and desperate. It is important that you properly research any company that you consider working with to help stop foreclosure. There are also many free resources that are available. The internet is a great place to access this information. Make sure that you do your homework before allowing anyone to help.
The best place to start is to communicate with your lender. They are in a unique position to help you. They have quite a bit at stake if your property goes into foreclosure. It is estimated that lenders lose between fifty to sixty thousand dollars every time a property is foreclosed on. They are in the business of lending money, not owning or selling houses. There are also laws that prevent lenders from making a profit on foreclosed properties. They tend to be motivated to help stop foreclosure. It is important to never ignore any communication that your lender sends you. There are programs that are available when you are only 1-2 payments behind that are not available the further behind you get. The initial letters will provide valuable information to help stop foreclosure.
The US Department of Housing and Urban Development (HUD) is a great resource when finding help stopping foreclosure. Their web site offers many tips that you can do on your own that may be enough to help stop foreclosure. The web site also offers information to contact HUD counselors that are trained to help stop foreclosure. These counselors either provide their assistance free of charge or for a minimal fee. Some other companies will charge fees as high as 2-3 times you current mortgage payment, so HUD counselors are a valuable place to start.
If you do end up working with a company that can help stop foreclosure, make sure you research them extensively. Check the Better Business Bureau in your area to see if they have any grievances against them. Never agree to sign something that you don’t agree with or understand. It is not uncommon to find others that claim to help stop foreclosure, but are only looking to take advantage of your situation. Be leery of those that claim to be able to solve your problems by signing a few papers. You may be signing away ownership of your home. Also be weary of those that offer the counsel to stop paying your mortgage. They do not have your best interest at heart.
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