There are many different ways in the faltering economy today to help stop foreclosure on an individual’s home. However, the only way to get foreclosure help is to work very closely with the mortgage company and foreclosure help agencies in order to help to solve the issue and hopefully keep the individual in his home. If individuals get scared and avoid the issue, thinking that there is nothing that can be done for them, that is usually going to be the case, since agencies cannot start to work on a solution to the problem if they are not fully aware of the particular situation that the individual is facing.
Steps to Take
One of the first steps to take when individuals know that they are going to miss a payment on their home is to contact the lender immediately. Often the lender can let the individual miss a payment for that month if the next month the individual thinks that he will be able to make a payment again. This is especially true if the individual has always been on time with payments. Even if this has not been the case, there is also at times a partial payment option for that month, with the full payment to be due the following month.
If the individual knows that the payment is not going to be able to be made for a couple of months, there is still foreclosure help available and it is critically important that he talks to the lender from the beginning of the time that he knows he is not going to be able to pay. For instance, if the individual has lost his job and is in search of another one, then there is often foreclosure help in terms of a special forbearance in which the mortgage company will allow him to go a couple of months without paying the mortgage in order to allow him time to obtain another job and then start to pay again.
There are some people who need foreclosure help because their mortgage was financed on an ARM loan, which means that the interest rate of the loan can climb a percentage point per year up to a certain height, usually five to eight points. This can be great for the individuals in the beginning but can cause increasing strain when the monthly mortgage gets to be out of their range for payment as the interest rates climb year after year. A foreclosure help option for these individuals is often to refinance the home at a lower rate of interest so that it is fixed and can no longer climb higher year by year.