Learn the Truth About Loan Modifications and Foreclosures

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Learn the Truth About Loan Modifications and Foreclosures

By detaining the process of Foreclosure, you can stay free from mortgage payments for your home beyond three years of time. There are plenty of homeowners who face the chance of foreclosure in recent times. Few of these home owners match the conditions to be eligible for support under the Mortgage Modification plans by President Barack Obama.

Homeowners have various techniques to avoid foreclosure. But it is important that they understand about the process of Foreclosure and the laws which control it. The laws of Foreclosure can differ from one state to another.

The Foreclosure process varies for every homeowner, depending on factors such as type of mortgage, lender, and state in which the homeowner resides etc. Though various factors could assist the homeowner in extending the deadline for foreclosure by different degrees, the fundamental steps are applicable for all. In order to make you understand the process of foreclosure better, there are some simple steps listed below:

1. You should call your lender immediately when you face trouble. You shall be capable of working with them in order to avoid legal action. Also, if you go for foreclosure, you credit rating will be impacted negatively.

2. After you have ceased to make monthly payment for your mortgage, you shall be contacted by your lender either through mail or phone. If they are not able to reach you, they will seek court action and apply for petition in order to start foreclosure process. Housing and Urban development department suggests answering the mails from lenders immediately.

3. You also have a possibility to respond to petition. Based on your reply, you can buy time for foreclosure process. Generally homeowners will send letters of hardship to lenders explaining the reasons for not paying the due on time.

4. There is also a chance of scheduling a hearing for foreclosure in order to explain to them the reasons for payment delays. Either you can hire a lawyer or represent yourself, but it can help in stretching out the foreclosure process.

Also, be cautious about scams related to foreclosure such as bait and switch loans. You should opt for bankruptcy filing only as the last choice to prevent foreclosure.

Generally, home owner could extend the foreclosure process for more than three years, with or without help of legal advice. The key point is to know how to procrastinate the process incessantly. There are different techniques to prevent foreclosure and you could be capable of doing it on your own, if you are aware about foreclosure process.

Based on way you deal with your lender and what techniques you use, this can result in extending the process of foreclosure from few months to three years in certain cases. It depends on your potential in using law in your favor for sustaining the fight for long period.

Foreclosure is a process which could be delayed and you could stay free without mortgage payments in your home, no matter whatever your financial situation is, even if you don’t have any income. For strategies and tips on how to prevent foreclosure without paying for agencies, brokers or attorneys, check this out.

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About the Author:
Michael Clough is an expert author on loan mods.
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