How did this happen?

With an estimated 500,000 homes facing foreclosure right now, it can seem impossible for a single family to see their own ability to stop foreclosure. It doesn't help that the biggest headline is "Foreclosure's on a Rise". Homeowners feel there is nothing they can do, as financially they are at a dead end.

A majority of the foreclosures occurring today are the result of loans that were originated in the past 2-3 years with loose lending practices and creative financing options that allowed individuals to purchase a home that they otherwise couldn't afford under normal fixed rate options. Those loans have now reached the end of their interest only periods or the rate is due to adjust. Homeowners are now facing the facts of an increased payment. Some of those increases can be as high as $2,000 or more.

What can you do?

Negotiate with your lender. You don't want to lose your house and they don't want to take it. Did you know when all is said and done the average foreclosure costs your lender $40,000? That's a big incentive on their part to try and work with you. Now with that said, there are some things you should know.

1. The mortgage company is expecting you to meet certain criteria to qualify.

What you show as income versus debt is vital to your success with negotiations. It's also important to remember that when you negotiate with your lender, the information you provide them is almost always a one shot deal. If you advise your mortgage company that your income is too high, they will see that you can clearly afford your payments, and there is no need to offer you assistance. If you show that your debt is too high, then they will feel there is nothing that can be done, because you cannot afford assistance. Finding the middle ground can be tricky and changing the information you provided the lender is near impossible once they have rendered a decision.

2. So in following with Rule # 1, the information you provide your mortgage company about your bills and income is critical.

You make or break yourself here. Often times homeowners think they know what the lender wants to hear or on the other hand you may have no idea where to even begin. Lenders don't like to tell you what they are looking for when you enter into negotiations with them, because of course they want to have the upper hand. You simply fill out the forms, send them in for evaluation, and wait to her back. Providing too little or not enough information can eliminate you from some of the best programs available. As a homeowner trying to stop foreclosure, you want to get the best plan available with the least amount out of pocket.

3. Know your options.

Because the Lender is looking out for themselves first and you second, you have to know what options are available to you. Why? So you can ask for them. I've heard time and time again of Lenders that only offer Repayment Plans to homeowners trying to stop foreclosure unless the borrower asks for alternatives. That tells me that the Lender is relying on borrowers to be informed enough to know that there are more than one alternative out there for them. Most homeowners assume the lender is going to offer them the best deal they qualify for. Not so. If you don't ask for it, they won't offer it.

4. The Hardship letter is probably the most important piece of information you can provide to the lender.

Take your time when you are writing this letter. The time spent will be worth its weight in gold. It needs to be hand written, and it should include specific dates, events that caused your delinquency, and how you can now get back on track. If your reason for getting behind is not up to their standards, this will cause you to be disqualified. Also, if you can not show that you are able, and determined to get back on track, you have wasted your time applying.

All of this can be overwhelming for a family who does not know the ins and outs of a mortgage company, or their Loss Mitigation department. For these reasons, many families decide to hire professional Loss Mitigators to work on their behalf for ultimate success to stop foreclosure.

Just type in STOP FORECLOSURE into your search engine and numerous options come up. However, I do recommend you do a lot of research and find a company that can be trusted. Any company that makes claims they can immediately stop foreclosure should be approached with caution. There is typically no instant solution that makes it possible to stop foreclosure. When you look for a company to help you, you should consider it as "a partnership" between you and them. They will work with you to explore all possible options, and they will negotiate with your Lender on your behalf. You will need to provide all the required information for them to assemble a package to start discussion with your Lender.

You need to remember, it is your house, and your livelihood. Therefore, you should be a part of the solution, not just stand back and wait for an answer. They should have constant contact with you, they should provide you with documents, request information from you, and also provide you at least weekly updates of their progress.

It may not be easy to stop foreclosure, but the alternative of losing your home will make obtaining credit in the near future impossible. Time is not on your side. Act swiftly to find a resolution.

More info on your stop foreclosure information search:

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