Americans are facing financial hardships at record paces and preventing their home from going into foreclosure has never been harder. The most obvious problem they face is how to stop foreclosure, but they must also address their tarnished credit, a contracting mortgage market, their adjustable rate mortgage that is coming due and that mortgage pre-payment penalty most have. All of these variables are making it that much more difficult.

Statistics are showing homeowners who were previously in foreclosure are actually going back into foreclosure because they did not correctly address all five areas of stopping the foreclosure. For the most part, homeowners are unaware of the guidelines to these unfamiliar programs and tell lenders what they think they want to hear. Mortgage companies have a fiduciary responsibility to stockholders to collect money and pay them dividends, not to befriend you. Please remember that it's the lenders job to collect money and it is not their responsibility to guide you to all the facts.

The process of stopping foreclosure is called loss mitigation. Since foreclosures are legal issues printed in local newspapers, homeowners will typically find some interesting folks drawn to their 'foreclosure opportunity'. Fifty or more so called experts and attorneys will write to say that they can help or bankruptcy is the only way to save their home. Forget that bankruptcies commonly fail but all those so called experts, if they really can help, only stop the foreclosure process and don't address your whole problem.

Skilled loss mitigation specialist will cover everything you may or may not have thought about during these trying times. Finding the right 'Loss Mitigation' expert is the same as working with other professions people commonly use. If you break your foot, you go to a podiatrist. If you get sued, you retain an attorney. If you had a brain problem, you would seek out the best neurosurgeon that would take care of one of the most important parts of your body. Well correctly stopping the foreclosure process and retaining the largest financial investment most people have, is no different.

You Have To Address Prepayment Penalties. Even if you found a lender that might offer you a mortgage, homeowners that have prepayment penalties are finding that a refinance will gobble up 5% of the loan balance. Homeowners that are facing a foreclosure have obviously experienced previous financial stress, a new lender will charge 3 to 5 points and paying that 5% prepayment penalty will consume a large chunk of your equity. Refinancing is definitely not the best option in most cases.

Stop Foreclosure. Obviously, this must be addressed and 'how do we actually stop the foreclosure?'. Lenders may offer a solution directly to a home owner but it is designed with the banks best interest in mind and frequently requires borrowers to meet impossible underwriting guidelines. Typically they approve plans that are outside a home owner's budget. "The trick is to force the lender to approve a plan that is in the best interest of the home owner and their ability to pay their mortgage". Homeowners need to locate trustworthy representation. The majority of homeowners are able to solve their financial troubles in a relatively short time. They frequently can handle their bills but are $10,000 to $30,000 behind on their home loan and their lender won't take partial payments. Often times, they have saved some money from the nonpayment but still are losing their home. We find that if the hardship that caused the mortgage delinquency has been resolved and with a professionally designed plan of action, it is very possible for us to stop foreclosure.

Adjustable Rate Mortgage Are The Secret Killers After You Stop A Foreclosure. Wow, can we say anymore? The largest cause of the current foreclosure dilemma is adjustable rate mortgages that are coming due and they are adjusting. Not only are they are real problem but the also adjust annually so every year you will have to contend with, Can I afford my home next year? The continual stress is not good. High profile loss mitigation specialists will not only address this with the lender but they will also negotiate to lock you into a fixed rate mortgage, often at better mortgage rates than you had before!

How Does A Contracting Mortgage Market Affect You? Since late 2006, over 110 mortgage lenders went out of business and another 60+ were acquired by larger mortgage companies. The problems are even larger than that. Just look at all problems on Wall Street with the companies that dealt with the subprime mortgage market. Billion dollar companies that are now considered worthless because of the subprime mortgage market. The point to this is simple. Subprime mortgages that help people with bad credit are a thing of the past. If you have a foreclosure process you are facing, no matter what credit you had at one time, now you are bad credit and nobody wants that mortgage. Only credit repair and years of consistent new and good credit will fax this. This is another reason that you must have your mortgage interest rate and term addressed at this time.

Why Is Your Credit Important? As just mentioned, no lender wants to offer mortgages to people with bad credit, regardless of the reasons for it. Mortgage companies are running scared. You need to be aware of the fact that your credit will be damaged for years.

"Typically, we discover that the banks policies differ from what the law allows for", said Scott Pasinski. Mortgage companies may offer to make a deal with you, but those deals favor themselves and they request more money than you can afford or more than they really will accept. Most people are new to the foreclosure process and they do not make their best case. It appears that many lenders take advantage of these homeowners that are unaware of the process."

The answer for the majority of homeowners is clear. The clear choice when confronted with a home foreclosure is to leverage the years of experience that a professional Loss Mitigation Specialist has. In addition, it is important to remember that this is the least stressful and most cost effective option. In fact, a good specialist will not charge for the first consultation, this will allow a homeowner the opportunity to see if they are candidates for the program. The vast experience and skill set of a professional typically help homeowners out of foreclosure 98% off the time. More importantly, all five areas that must be addressed will be allowing you to have a triumphant recovery.

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