Q. What is foreclosure?

Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take.

Q. What can loss mitigation do for you?

The goal of loss mitigation is to work out an agreement between the homeowner and the lender that will stop foreclosure proceedings permanently. This allows the homeowner to stay in their home and protects their credit history.

Q. How foreclosure can be stopped?

There are companies that specialize in resolutions of mortgage delinquencies or home foreclosure claims on behalf of you, the homeowner. They would perform a detailed financial analysis and work with you to determine your best alternatives. They would review your lenders loss mitigation policies and your state’s foreclosure law to make sure that we give you the best service within the context of your situation. By working with you and your lender They would able to tailor a resolution to meet your specific criteria and financial circumstance.

Q. How long do I have to act?

Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get a work out agreement with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use. There are many homeowners who did not even know that they had already lost their house!

Q. Do I have enough time to stop my foreclosure?

Up until the foreclosure sale occurs there is still hope. If a sale date for your house has been set you need to act fast. Sales can be stopped at the very last moment but this is very risky and some lenders will not agree to it. You’re best option is to take action immediately to stop foreclosure before it goes too far.

Q. Should I negotiate with the lender myself?

Yes. If you are only a payment or two behind and your lender has not hired an attorney to begin foreclosure proceedings you may be able to negotiate a work out agreement yourself. If you are successful then you have saved yourself some funds that can be used to get caught up on your mortgage. Just remember, don’t waste a lot of time on this. Time is not on your side right now. If you don’t have something worked out within 1-2 weeks, then it’s obvious that your lender is not serious about working things out with you directly. When you get to that point you will be better served by professional representation that can use the formal business and legal protocols to your advantage.

Q. I’ve already talked with my lender and they just want all their money. Is there still help for me?

Yes. Most of homeowners experienced this kind of inflexibility from their lenders before calling professional attorneys. Foreclosure dealing companies get your bank to listen to your needs because they know and trust them. Over the years good companies have developed positive working relationships with key people at most banks.and have earned a reputation that allows to be heard when no one else can get through the red tape.

Q. I’m considering filing for bankruptcy to stop my foreclosure but I understand that this could dramatically affect my credit. What should I do?

You are correct. Outside of a foreclosure, bankruptcy is the worst thing you can have on your credit report. Bankruptcies stay on your credit for up to 10 years and can prevent you from getting any kind of loan for many years. In addition, recent changes to federal bankruptcy laws have made it increasingly difficult to use bankruptcy as a means to keep one’s home. There are many other ways that you can keep your home and avoid filing for bankruptcy.

Q. What if I just can’t find a way to keep my house?

There are times when all means have been exhausted and the situation is so dire that a person just won’t be able to stop the foreclosure process through debt negotiation. In these circumstances it is always best to not give up but to take further action to avoid foreclosure. A foreclosure has the most significant negative impact on one’s credit and can make future home financing extremely difficult if not impossible. Please do not let this happen to you.