FORECLOSURE

What It Really Means & How to Avoid It

9 Ways to Avoid Foreclosure

REINSTATEMENT:  Bring the loan current

FOREBEARANCE:  Temporary repayment plan

REFINANCE:  New loan with reduction in monthly payments

LOAN MODIFICATION:  Modify original loan terms

SELL THE PROPERTY:  Use equity to payoff or pay difference      

RENT THE PROPERTY:  Must make loan current

SHORT SALE:  Negotiate with bank to accept sale under loan amount        

DEED IN LIEU OF FORECLOSURE:  “friendly foreclosure”

BANKRUPTCY:  Will stall foreclosure but not prevent it

Reasons to Avoid Foreclosure

1.  The homeowner will always have to disclose they have had a foreclosure on any mortgage application

2.  Credit Scores will be lowered by 300 points affecting the ability to get a car, apartment, credit cards, etc.

3.  A foreclosure is the one credit report item that is almost impossible to be repaired

4.  Military and government security clearance could be at risk with foreclosure

5.  Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy, not to mention that current employers run credit checks which can put a current position in jeopardy

While it may not seem like it now there will come a time where your current financial troubles will pass.  You will feel much better knowing that you did everything you could to avoid this devastating financial consequence so many people face today.