@2009 by Tony Barnes.

I am going to share some tips that the banks do not want anybody to know on how to avoid foreclosure. What is going on right now in this country is many banks made outrageous loans to just about anybody who could fog up a mirror. Now their strategy has come back to haunt them with the current foreclosure crises.

1.  If you have not missed a payment yet but think you are going to, the first step is to contact the bank and try to make arrangements to pay, or get a forbearance that allows you to delay payments for a short amount of time.

2. Ask for a repayment plan where you add a portion of the missed payments to the next few payments. This will help in the event of a short term unexpected expense or sudden repair that may take you by surprise.

3. If you are two or three payments late, the lender may still make arrangements to repay, but you may have to put up to half of the outstanding balance to resume the loan. Never ignore the lender letters and notices. Always keep in contact with the lender to keep them aware of the situation. Ignoring the problem only makes the situation worse and increases the costs.

4. You may get a loan modification through the lender bailout programs from the government. If you qualify the lender will adjust the terms of the mortgage to make the loan more affordable. They can lower the interest rate, re-amortize the past due amounts into a new loan, or lengthen the time period of the loan to reduce the payments.

5. Some companies may offer a short refinance where the lender forgives some of your debt and refinances the rest into a new loan. The lender is able to get more money this way rather than foreclosing on you which creates a win-win for both of you.

6. Deed in Lieu of foreclosure is another possible step that can help. Basically you sign the paperwork to give up your rights to the home and give it back to the bank. Then the bank can skip the foreclosure process without having to foreclose.

7. This last step is negative on your credit and should be avoided if possible. You can file chapter 13 bankruptcy to stop the foreclosure process and can force the mortgage lender to accept a more friendly payment plan. A bankruptcy will affect your credit for 10 years.

If all the seven steps above fail, you may still have one option. You can sell the property up until a few days before the sheriff sale. You can contact an investor such as me and we may purchase your home and put money back into your pocket if your situation allows it. For more details or to hear a free recorded message with these steps you can call 888-442-2320 x9004.

Here is the information an investor will need to know about your situation to see if you qualify.

By using these simple steps you may keep a foreclosure off of your record, possibly receive some money back and give you piece of mind by alleviating part of your financial responsibility and burden.

Worried homeowners who are not able to make their monthly mortgage payments on time are facing foreclosure. It is a kind of legal process in which a borrower under a mortgage is deprived of his own interests in the mortgaged property. Millions of people wanted to avoid foreclosure and are looking for alternative foreclosure option that may save their dream home.

If you are facing foreclosure, then there are various methods to avoid foreclosure without affecting credit report:

· Loan Modification is the best way to avoid foreclosure. It is the most popular foreclosure option that is widely used by the homeowners. You can get your loan modified by adding new terms in it. A loan modification can save a lot of money and it may include certain features such as lowering principal balance, converting to a fixed rate, lower down monthly mortgage payments, reduce interest rate, etc.

· Partial Claim is another Alternative Foreclosure Option which you can ask to your mortgage lender. This option works with you to obtain a one-time payment from the FHA-insurance fund. To qualify for the partial claim, make sure that your loan should be at least 4 months delinquent but not more than 12 months. You need to sign a promissory note and a lien will be placed on your property until the promissory note is fully paid.

· Another Foreclosure Option is that you can avail is short sale. In this, the lender agrees to sell his property on the lesser amount than the outstanding loan amount that forgives any remaining debt.

· Special Forbearance has also been suggested by your mortgage lender which gives a permanent reduction on your monthly mortgage or postpones the payments for a few months. You need to prepare a file of documents including the financial statements which should be submitted with the lender along with a hardship letter to prove that you can pay your payment plan.

· Short Refinance is also provided to avoid foreclosure. In this option, the lender forgives some of your debt and get refinanced the rest into a new loan.

The current housing crisis, combined with ever rising unemployment, has brought the horror of foreclosure to many families.

Foreclosure on a loan is something which should be avoided on all costs since it means not only the loss of house and home but a lifetime of bad credit, and may even keep a person from ever owning their own home. Realizing this problem, many companies, charities and even the federal government have stepped up to halt foreclosures.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“…Many charities are helping people avoid foreclosure by giving them help and options. Anyone who is facing foreclosure should look for charities in their area that can help them negotiate with their lender or the person currently holding their loan so that the interest rate or payment is decreased…”

It is, of course, not possible to avoid paying off the loan entirely, but most corporations are not eager to end up losing thousands on the loan by not having it repaid, especially since the house they would receive in the foreclosure is of no use to them. Smart negotiators and clever intermediates are working hard to help people renegotiate their payments to something more reasonable with their current financial situation.

The government is also stepping up to the task by offering a program through the Fannie Mae corporation. “…Persons whose loan has been purchased by Fannie Mae can contact them to negotiate a lower rate of interest, which they will almost certainly grant if it will avoid foreclosure. Unfortunately, this cannot help someone who has no income or savings and cannot make any payments at all…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com

First, you need to understand how you got into trouble in the first place. This is something you want to have thought about before calling the lender or crafting a hardship letter. Have you had a loss of a job? Is your interest rate climbing in your adjustable rate mortgage? Have property values declined in your neighborhood making it difficult to sell. Once you put your finger on the problem, you need to face it head on. Ignoring the letters and phone calls from your lender won’t make the problem go away. In fact, it can make it much worse.Second, as soon as you realize you have a financial hardship, or problem that will prevent you from making timely mortgage payments, you need to contact your lender. If you’re in the position right now of being in trouble, contact your lender immediately. Most banks aren’t excited about having to resell your home. They’d rather work with you in most cases to keep your home.Third, determine if there’s a way for you to increase your income in order to put more money toward your mortgage payments. Can someone work a second job? Can you search for a job that’s higher paying?Fourth, it’s also important to see if you can refinance your mortgage at a fixed interest rate. This will keep your payments the same over the entire life of your mortgage. If you can refinance, you may be able to set up reasonable payments.Fifth, don’t be afraid to do a bit of thinking, “out of the box”, an option for your family, may be to rent your home if you can get enough rent to cover the cost of the mortgage. You may also want to consider allowing someone to rent a room to bring in extra income for your home.Sixth, if you can’t bring in more money and refinancing isn’t an option, you need to try to sell your home. As difficult as it may be to let go of it, it’s better to sell it than have a foreclosure. If you owe more than your property is worth, you should contact your bank. Many lenders will allow you to perform a “short sale” that will allow you to sell the house for somewhat less than its value and have the difference forgiven. Many banks allow this because in the long run it’s still less costly for them than trying to sell your home.Finally, if you’ve exhausted all of the possibilities and you can’t find a way to pay your mortgage payments and get out of trouble, you may have to walk away from your home. A foreclosure will be a dark mark on your credit for many years; however you should remember that you’re not alone. You simply have to take with you the lessons you’ve learned about home financing.K. Patrice Williams has a BA in Economics as well as a law degree. She has successfully managed both residential and commercial multi-million dollar income producing assets and budgets for more than 10 years. As a 1st year law student, Patrice established a real estate development and consulting business and acquired over 30 rental properties. As the housing market values decreased- like millions of other Americans-her properties were negatively impacted by shifting ARM’s, combined by a sluggish economy. Patrice has researched and personally implemented almost all of the pre-foreclosure techniques detailed in the book: “6 Simple Steps to Avoid Foreclosure”. http://www.avoidforeclosuremanual.com

You’ve got to act fast the moment you feel that you are at risk of foreclosure. One thing you must prevent from happening is the filing of a Notice of Default. This notice is basically a shout out to everyone that you are behind your mortgage payments, and if not dealt with accordingly, lenders can seize your home.

As soon as you see trouble looming ahead, call your lender and work out some home-saving methods. You don’t have to be scared or embarrassed because lenders are more than willing to help homeowners figure out a way to avoid foreclosure, as long as you let them know early. Lenders can give you options according to the kind of financial situation you’re in like:

•    Forbearance – gives you more time to settle your mortgage payments. Lenders or mortgage companies will, for the meantime, allow you to pay less than the full amount of the mortgage. If you’re lucky, they may even allow you not to pay anything at all, as long as you prove to them that you will have the resources (salary bonus, tax refund, etc.) to pay them sometime in the future. •    Repayment plan – you can ask your lender to allow you to carry over unpaid amounts to your monthly payments. Let’s say your monthly rate is $1,000, and you’ve been delayed for two months already, you can add $100 each month until you pay the amount in full. •    Loan modifications – as the name implies, you make certain changes in the agreement. Here, lenders can freeze or adjust the interest rate to make it more manageable for you. You can extend the number of years in which you are to pay them; go from an adjustable-rate mortgage to a fixed- rate mortgage; or add neglected payments to your current loan. •    Refinancing – if you meet certain requirements from your lender, they can help you increase your loan balance so that you can include back payments to it. •    Partial claim – as long as you meet the specific criteria, lenders can help you get an interest-free loan from the Housing and Urban Development that you can use for delinquent payments. •    Debt forgiveness –simply means that the lender waives your obligation to pay, which is something that happens very rarely. With the numbers of evicted people continually rising, more people are putting the blame on lenders, when ironically, these are the first people who can help you save your home.Next on the Foreclosure Series:  Fight for Your Homes, Stop ForeclosureHousing Assistance Network ( http://new.housingassistancenetwork.com ) – is a site that aims to help those who are in the low to moderate income brackets find financial assistance for housing, help in acquiring a new home, or grant programs from both state and non-government institutions.

Approximately 2.2 million Americans have an adjustable-rate mortgage (ARM) that is due to adjust this year. For many homeowners these newly adjusted rates will significantly increase their mortgage payments and lead them into foreclosure. If you are facing foreclosure or believe you will have difficulty paying your mortgage because of an ARM reset then the Federal Housing Administration (FHA) has a new program designed just for you.
The program is called “FHASecure” and it gives homeowners with ARMs and “interest-only” loans the ability to refinance up to 97.75% of their home’s appraised value into a FHA-insured mortgage. By refinancing into a FHA-insured mortgage, you can expect to pay lower monthly mortgage payments. Under the FHASecure program the lender will not automatically disqualify you for any late or non-payments on your existing loan. Moreover, the lender can offer you a second mortgage to make up the difference between the value of your property and what you owe.
As long as you are current on your mortgage, you are eligible for an FHASecure refinance. If you are delinquent, the default must have been due to the payment shock of an interest rate reset or, if you have an Option ARM, the “recasting” of the mortgage to fully amortizing. If you are delinquent because of job loss, divorce, medical issues, or any other hardships you should explore your other options. There isn’t a limit on how far behind you can be on your mortgage or how many payments you’ve missed. Whether you’re current, one month or multiple payments behind the amount you can refinance will depend on the value of your property and how much you owe and if the lender, or another eligible source, is willing to take back a second mortgage to help bridge the gap between what is owed and your home’s value.
If you do not have enough equity in your home to refinance you should speak to your lender about a second mortgage or a “short payoff” to make up the difference. However, these options are at the discretion of the lender. To find out what the value of your home is you should check http://www.Zillow.com or speak with a local real estate broker about appraising your home.
The FHASecure program may also help those already in foreclosure but each situation is different and is dependent three factors: the value of the home, the amount owed, and if the lender is willing to offer a second mortgage. Homeowners facing foreclosure should first educate themselves and then speak with their lenders or seek counseling from HUD-approved counseling agencies.
Both first and second mortgages can be included in FHASecure so long as the combined amount is within the FHA loan limit. If the combined amount exceeds the FHA loan limit or the loan-to value limit, you should ask the lender for a second mortgage to make up the shortfall.
People will still have to qualify for a FHA insured mortgage, based on their capacity to make the monthly mortgage payments. Unfortunately, those who shouldn’t have gotten a home loan in the first place will not be able to qualify for FHASecure or other FHA refinancing options. Fortunately there are other options that will allow them to avoid foreclosure and/or save their credit.
If you believe the FHASecure loan can help you avoid foreclosure, then dial 1-800-CALL-FHA or visit http://locator.fha.gov to locate the nearest FHA-approved lender in your area.

If you want to avoid foreclosure the first thing that you should do is meet your Lender. Lenders foreclose by filing a Notice of Default to protect their interests. If you’re not in a position to make your mortgage payment on time, just call your lender and tell them your problem. They may give you some time. If a lender sends you a letter don’t ignore them as it may worsen the situation. On knowing about your hardships, lender may provide you some options which may be of help to you.Forbearance: Forbearance means lenders postpone foreclosure by giving time to the borrower to make up for overdue payments. Before taking any legal action, lenders may wait for some time and make a repayment plan that may work for you. In Forbearance, your lender may postpone your mortgage payments for a limited period of time. Your lender will add the missed home loan payments to your mortgage-extending your loan period but allowing you to keep your house and your credit card in better standing. Your lender may want you to stick to your payment schedule in order to avoid foreclosure.Debt Forgiveness: Debt Forgiveness means lender writes off a portion of outstanding debt. If you agree on paying the mortgage payment on time after a certain period, lender may forgo a payment or two. He may give you a break and waive your obligation. But this situation rarely arises. Repayment Plan: If your payment is, say, $1200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up. This is called a repayment plan. Note modification: Note modification can prevent foreclosure and bank repossessions. If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable rate for you. A lender might also extend the amortization period.Refinance: Many homeowners find it difficult to pay mortgage amount on time which leads to foreclosure. In order to avoid foreclosure, refinance method can be followed. A homeowner can take a new loan and pay off the original loan.Partial claim: A partial claim is an option available to homeowners with FHA loans who meet the Department of Housing and Urban Development (HUD) guidelines for a partial claim. With this option, homeowners are given an interest free loan, guaranteed by HUD, to pay off the arrears and reinstate a delinquent loan. This loan must be repaid when the first mortgage is paid off, or when the property is sold. After a partial claim is completed, the homeowner does not need to worry about foreclosure or losing their home.