foreclosure credit-hardship letter

Every year over 8 million homeowners are seekingwith are a temporary reduction or suspension of
help preventing foreclosure proceedings. This is ayour payments. If you have a FHA VA or other
stunning 30 year high. Experts project that by 2006,government loans you may qualify for even more
12 million homeowners will be teetering on the brinkoptions.
of foreclosure. Many homeowners are not awareFile for Bankruptcy - Some attorneys may advise a
that they can prevent foreclosure and save theirhomeowner to file for bankruptcy. This is a legal way
house. Did you know that you can stop theto avoid the foreclosure process. However the
proceedings up to an hour before the auction takesprocess may still continue and you will be stuck with
place?bad credit for 7 years. You should consult your
As a homeowner facing foreclosure there are variousattorney about the option of bankruptcy.
options available. We will briefly examine some of theSell your home The problem with selling the home is
most popular options.that if you list it with and agent, and it still is not sold
Reinstate the loan Ideally you would like to be ablethe lender does not care, you are still on the
to pay the loan payments that you are behind onforeclosure clock. The best way to go about selling
and bring the loan current. These costs would includethe home in this situation is to contact a real estate
whatever owed on the missed payments, and anyagent that is familiar with foreclosure investing. They
additional late charges or attorney fees. This is themay be able to put you in contact with investors
most efficient way when preventing foreclosurethat will be happy to buy your home. Preventing
proceedings.foreclosure proceedings can be as easy as getting in
Get forbearance When a lender forecloses on acontact with a foreclosure investor.
property it is expensive for them. They would ratherDeed in lieu if foreclosure This is when you would
work out some sort of arrangement than proceedvoluntarily give the house back to the lender. The
with the foreclosure. Talk to your lender and see iflender is not obligated to accept it. You should discuss
they are willing to work out a plan that outlines awith the lender how they will report it back to the
way to get current on your mortgage. Thisproper agencies. Should the lender choose to refuse
agreement will vary depending on the situation andthe deed they are required to file a Notice of non
the lender. Some things they may be able to helpacceptance with the county recorder.