Answers
I have missed three payments of my house mortgage what can I do to prevent it from going to foreclosure?
what are the rules to prevent foereclosure
Best Answer:
Why do you ask such a question, are you brain dead ? Make the payments. No bank really wants to foreclose and many are dragging their feet on tossing deadbeats out into the street. Your in luck there and maybe by calling the bank and working out a plan they will not have to put your file into their non performing pile. Offer to make at least 1/2 of the arrearage up immediately and they will know you are serious. The magic number is 3 missed payments and your there now, they might hardline you some but keep in mind they want to get paid without foreclosing. Right now banks are bending over backwards to work out issues with bad loans. DO NOT FILE BANKRUPTCY or you will lose the home and in most cases even sooner than through a typical foreclosure process. The rules to prevent foreclosure were in your loan docs you signed.
Answers:
If you can not bring the account up to date immediately, call an attorney to stop any further actions.
#1 Rule in Preventing Foreclosures:
MAKE THE PAYMENTS ON TIME EVERY MONTH!
unless the bank really wants your house...talk to them and work out something...
Is it possible to refinance?
Check out some of these articles:
http://www.businessstarterpackage.com/cr...
You can also try the Home Owners Preservation Foundation. They are a nonprofit organization that will help you negotiate a forebearance with you lender for free. They are at www.995hope.org.
Also, contact your local HUD office. There are a lot of local programs available.
Two other options you have: Deed in lieu, and reverse mortgages. Deed in lieu is where you basically surrender your deed to the mortgage company without them having to go through the legal battle. It saves them tons of legal costs, and it saves you from having a foreclosure. A reverse mortgage is where you sell you home back to the lender based on how much equity you have in the home. If you have been paying the mortgage on time for a long time, you will have a couple of months or years of time with no mortgage payments to get your finances in repair before the lender owns your home and you have to vacate the premises.
Finally check with local investors. There are always people out there who will buy your house from you for a profit. You can find them in your local newspaper under the real estate classifieds. They normally have ads that say "we buy houses". This may not always be profitable to you. It will remove the problem though, and save you from having a black foreclosure mark on your record for life. A lot of times you can walk away with some cash in your pocket too.
Whatever you do - you have to MOVE FAST and act now. A bank can foreclose in a very short amount of time. Once a house is foreclosed, then you have lost every claim to any money that you have put into that property (although in some states there is a redemption period in which you can still pay off the loan and get the property back).
Pay the mortgage!
Pay what you owe and there will be no foreclosure!
My friend had the same problem - she finally ended up tallking to the financial institution and worked with them. It's been really difficult for her but so far she's doing great.
Make up the 3 payments.
If you've already 90 days late with payments, the chances of refinancing now days is virtually nil. If you don't think you'll catch up on your payments quickly, contact your lender's "Loss Mitigation" or "Owner Retention" department and explain your situation. Let them know that a loan modification won't work and ask them if they will consider a "short sale." Most lenders will allow you to live in the house without paying as long as you're actively trying to get it sold and you maintain it (mow grass, general maintenance, etc.). Most lenders I've worked with will allow about 90-120 days if you are working with them to get it sold so they don't have to foreclose. I'd work on this ASAP.
You can make the payments...
If not, the bank will foreclose on you. I suggest calling the bank and speak to the loan servicing / foreclosure department. Ask for a "forbearance agreement". They might allow you to make additional payments each month to catch up. If you don't have any money and don't plan on having any then you are delaying the inevitable. 90 days is a severe deliquency. Most lenders start filing foreclosure notices after 120 days. Call first thing Monday. The bank doesn't want your house back, believe me...
You can also sell your home. Sometimes the bank will let you sell it for less than you owe known as a "short sale". Now is the time to negotiate such an agreement. Then contact some realtors in your area and see if you can "fire sale" your home before the sheriff comes knocking.