Stop Foreclosure With These Options

Here are Three Stop Home Forclosure Options:

There are several options a home owner may take to stop foreclosure.  Below we list three stop foreclosure options that may help you if you are currently facing foreclosure. 

Choosing which option will work for you, depends on your current situation:

- Special Forebearance
- Mortgage Loan Modification
- Particial Claim

Special Forebearance Option to Stop Foreclosure:

The Special Forebearance Option is where your mortgage lender could arrange a new repayment plan based on your current financial status.

In addition, your lender could allow a reduction of your monthly mortgage payment, or even suspend the payment for a few months (adding on to the time to pay for the full mortgage).

Would You Qualify for the Special Forebearance Option?

Qualification for Special Forebearance to stop home forclosure, usually requires that you have recently experienced a sudden reduction or loss of income (an injury, loss of job); or an unusual increase in living expenses.

Your lender will usually require you to provide proof to show your income hardship situation, or you may also be required to write a Hardship Letter to Stop Foreclosure.

Your mortgage lender could also request you provide proof that can now make the new mortgage payment amount, if a new payment plan is setup.

Mortgage Loan Modification Option to Stop Foreclosure:

With a mortgage loan modification option you may be able to refinance your current mortgage at a lower rate and / or add years onto your mortgage loan term. If you use a mortgage loan modification to stop foreclosure, you could also lower your monthly mortgage payment so that it is more affordable.

Usual Requirements for Qualification for Mortgage Loan Modification:?

A mortgage loan modification may be a choice for you if you have just recovered from an unusual income hardship. To qualify for a mortgage loan modification you will need to be able to afford the new loan payments.

Partial Claim Option to Stop Foreclosure:

With a partial claim option to stop foreclosure, your lender could apply for a payment from the FHA Insurance fund, US Department of Housing and Urban Development - HUD on your behalf. This payment amount would be the total amount of money required to bring your mortgage payments up to date.

Would You Qualify for a Partial Claim?

If your mortgage payments are at least 4 months past due, but not more than 12 months past due, you may qualify for a partial claim. You would also have to be able to prove that you can pay your mortgage payments from this point forward.

In addition, with the partial claim to stop foreclosure, you would also have to sign a promissory note for the amount that will bring your mortgage payments up to date.And, a property lien will be added to your property, until the promissory note is paid. The HUD provided promissory note is interest free. It must also be paid when you pay off the mortgage and/or sell your property.

The above three options are an example of what may be available for you to stop home foreclosure. You can learn about many more options if you visit the free information site: Stop Foreclosure Tips.