Ways to Stop Foreclosure

Five different tools to stop foreclosure:

1. Loan modification a loan modification is a hot topic with congress right now. A loan modification changes the original note by changing the term, changing the rate or changing the payment amount. There is a new government plan HAMP (Home Affordable Modification Program).

2. A Short sale: In a case where the home is worth less than the unpaid principal balance, you may be eligible for a short sale this will affect your credit, but not to the same extent as a foreclosure. Short Sale Help

3. A Deed-in-lieu of foreclosure (DIL): The process is when you deed the house back to the lender, give it back rather than going through the foreclosure process. The DIL will affect credit the same as a foreclosure.

4. Repayment plan (forbearance plan): The process is the servicer will take past due balance and break up into monthly payments typically 6 months.

5. Sell your home: sell your home traditionally

Wednesday, July 29th, 2009, by Foreclosure Help and is filed under "Ways to stop foreclosure, Ways to stop foreclosure ". You can leave a response here, or send a Trackback from your own site.