AVOID FORECLOSURE NOW!

Recent statistics estimate that one in eight homeowners are behind in their mortgage payment. Important information you MUST know in order to minimize your financial damage.

WHAT TO DO IF YOU HAVE MISSED MORTGAGE PAYMENTS

How to limit the financial damage How to keep your house How to negotiate a lower payment

Its horrible the feeling of vulnerability of missing mortgage payments. Because there is a natural tendency to avoid pain, many homeowners who miss payments do not rush to talk to the mortgage company or bank. Then the letter comes that states that the file is being sent to an attorney to start foreclosure proceedings and many are galvanized into action or numbed into inaction at that point.

Giving up your home

If you do not want to keep your home or feel that even lower negotiated payments are out of your reach, then you need to look at all your financial options. If you are only behind on your mortgage, then you may want to consider doing a Deed In Lieu of Foreclosure. This will limit the banks ability to go after you for a deficiency judgment once the home is resold. You can initiate this as soon as you receive notice that the home is going into foreclosure. Check with your attorney for details. If you are considering bankruptcy, then it is extremely important to include the mortgage.

Saving your home and lowering your payment

If you want to keep your home and feel that you can manage to keep your mortgage current if the payment was lowered, then it is extremely important to start a dialogue with the mortgage company after youve missed just one or two payments. Most banks are overworked right now and some modifications can take 4-8 weeks to negotiate. You need to negotiate from a place of knowledge and strength - we HIGHLY recommend one of the featured e-books you'll find at the end of this article.

The new Homeowners Affordability and Stability plan can help many negotiate a much better deal on their mortgage. But bear in mind that the banks are not volunteering the best possible deal for you. You have to be knowledgeable and savvy in how you negotiate its a fine line between convincing them that you cannot afford your original payment but are a secure risk for a lower payment. We have reviewed the following e-books and have found all three have valuable advice for those homeowners who are looking to modify their loan. DO NOT try to negotiate a loan modification without learning all you can about the process you could miss out on a getting the best possible deal!

Should you pay a company to do your loan modification? Many companies are requesting thousands upfront to negotiate for you. Stay clear from these companies many are scams and prey on desperate individuals. The money that you would spend on the load modification company would be better spent sending to the mortgage company as a sign of good faith. Some legitimate companies will only charge you once they have negotiated a lower payment for you but I would still advise caution. You will need to conserve as much money as possible to pay to the mortgage company.

With a little education (spending less than $70 on well researched advice) you should be able to have the tools you need to work out the best deal for your particular situation. We also recommend talking to a trusted attorney familiar with mortgage modifications, bankrupcy and finance issues.