For banks, home foreclosure used to be an uncommon action, but in today’s markets the number of foreclosures is increasing. As a result, many banks are establishing hardship programs to help stressed homeowners to stay in their homes. Due to the economy many homeowners are financially stressed, and become fearful of losing their homes if they can’t pay their mortgages.
Many stressed out homeowners dealing with financial hardship may not know that there are banks home foreclosure hardship programs available. Many programs are built into their contracts that they aren’t even aware of. If you are dealing with issues such as divorce, unemployment, lay offs, medical bills, or a sudden increase in your mortgage payment you may be experiencing a financial hardship. If you are experiencing financial hardship, contact your bank right away. Ask them about their banks home foreclosure programs. Your bank does not want to take back your property; however, to protect its interest, the bank will file a Notice of Default, because it stands to lose money if your home goes to a forced sale. Issues that concern banks, home foreclosure can seriously affect their investments.
For banks, home foreclosure hardship programs are necessary to protect their interests as well as the consumer’s interests. Banks home foreclosure hardship programs allow the banks to offer to change the terms of your loan to make the payments more affordable. Your bank may be able to freeze the interest rate, so that it can’t adjust to a higher rate; you may also be able to get your bank to spread out any missed payments. If you missed one mortgage payment of $1200, you would then be able to increase your regular mortgage payments by $100 for one year and that missed payment will have been recovered.
Before you miss your first mortgage payment, talk to your bank representative. Ask about their banks home foreclosure hardship program or policy. Their banks home foreclosure hardship policy may allow you to add one or two late payments onto the back of your loan, or you may be able to borrow on the equity of your home to catch up the payments.
If you want to stay in your home you need to try and prevent foreclosure before it starts. Never ignore any late statements from your bank. So many homeowners get into foreclosure because they did not communicate with their banks. They may have been laid off or lost their jobs, or suffered catastrophic illness. They might feel that there are no options available to them, but they will never know unless they communicate with their lenders. Some mortgages come with the option of insurance that protects the borrower’s and the bank’s interest if the borrower becomes unemployed. The payments will be made. A similar type of insurance may be included in a contract that protects the borrower in case of serious injury or catastrophic illness. For banks, home foreclosure hardship programs are a necessity to protect both the borrower’s and the bank’s interests.
If you are interested in acquiring a bank foreclosure home, there are many opportunities to buy a home for much less than the selling price. Many people are fortunate enough to buy a home for $0.70 on the dollar. You can contact the County Clerks office of the area you are interesting in buying a bank foreclosure home or you can go online to foreclosure.com and type in the city and state you are interested in. When you plug in the city and state and click “go” you will be taken to a page with all the bank foreclosure home listings in and around that area. You can also contact the REO (real estate owned) department of your local bank to obtain a bank foreclosure home list.
It is a good idea for every homebuyer that is interested in a bank foreclosure home to hire an agent to help ease the way for an easy sale. The present owner of the home may not trust you if you try to make an offer without representation. There are so many scammers out to hoodwink homeowners that are desperate, that they become leery of anyone that is not represented by an agent from a well known company.
You can buy a bank foreclosure home in any stage of the foreclosure process. It is a great idea to make an offer to the seller early on in the pre-foreclosure stage. This way the seller can walk away from the debt and his/her credit may be able to remain in good standing, and you, the buyer, still saved a bundle on the selling price. A reputable buyer will try to negotiate a fair deal, and not try to take advantage of a borrower in trouble.
An attorney should be hired to protect your interests and to help guide you through the process of securing a bank foreclosure home. An attorney can sift through the paperwork that goes with purchasing a foreclosure home. In a judicial foreclosure the lender has to sue the homeowner to get a judge to issue an order to foreclose. Your attorney will know how to negotiate to help you acquire the bank foreclosure home of your choice.
If you are interested in buying a bank foreclosure home through auction, you will be dealing with a non-judicial foreclosure. Properties are advertised in the local paper for 4 weeks, and the date and place of the auction will be listed in the publication. The auction opens at 10 AM and closes at 4 PM. The sale is not final until the following day. The borrower still has the right to redeem the property if he/she can pay off the bank and pay all the foreclosure fees right up to the final moment before the property changes hands to the new owner. Buying a bank foreclosure home may be time consuming, but it may be worth the trouble if you can save a significant amount of money.
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