| If you are having trouble making payments on | | | | a forbearance agreement. This would enable |
| your home these days, you are notalone. A | | | | you to temporarily postpone payments for a |
| recent report from RealtyTrac, Inc. says | | | | certain period of time without your lender |
| foreclosure filings are up 48% from a year | | | | filing a notice of default and initiating |
| ago. States which have been hardest hit by | | | | foreclosure proceedings against you. If your |
| foreclosures in 2008 include Nevada, | | | | situation is dire and you realize you |
| California, Arizona, Michigan, Florida, and | | | | won�t be able to make payments for an |
| Colorado. | | | | extended period of time, see if your lender |
| | | | will accept a deed in lieu of foreclosure. |
| Adding to these concerns, a new study | | | | Through this process, you will basically deed |
| released by Harvard University says the U.S. | | | | your home over to your bank or lien holder |
| housing market is the worst in 50 years. The | | | | and can avoid a lengthy foreclosure |
| study notes the mortgage market meltdown, | | | | proceeding. |
| steep rise in foreclosures, the decline of | | | | |
| new home construction, falling home prices, | | | | 3) Talk with counselors of national programs |
| and mounting job losses have all converged to | | | | such as HOPE NOW. It is an alliance between |
| make recovery from the current real estate | | | | lenders, credit and mortgage counselors, and |
| climate more difficult in the days ahead. | | | | investors. HOPE NOW can assist distressed |
| | | | homeowners by providing streamline measures |
| For homeowners who are on the verge of | | | | and options to prevent foreclosure. Visit |
| defaulting on a mortgage obligation, the | | | | for more details. |
| sooner action is taken to protect a home the | | | | |
| better. The following steps could be helpful | | | | 4) Proceed to sell your home. You can utilize |
| to avoid a foreclosure: | | | | the services of a real estate professional in |
| | | | your local area or post your property online |
| 1) Review the terms of your mortgage or deed | | | | through any number of for sale by owner |
| of trust. Go over the sections pertaining to | | | | websites. Even if you don�t get your |
| default and seek advice from an attorney. | | | | asking price, it is possible your lender may |
| There are a number of attorneys who | | | | agree to a short sale. This means you sell |
| specialize in real estate law who are | | | | your property for less than the outstanding |
| knowledgeable about the foreclosure process | | | | balance owed, but your bank or lender agrees |
| in each state and they are best qualified to | | | | to accept the proceeds as full satisfaction |
| advise you on your rights. Some might offer | | | | for the debt. Not all lenders will accept a |
| free initial consultations. Additional | | | | short sale and most have certain procedures |
| assistance might also be obtained through | | | | that must be complied with. |
| non-profit legal aid organizations and/or low | | | | |
| cost legal services. Check with the bar | | | | 5) As a last resort � file for |
| association in your state to see what | | | | bankruptcy. Once you file a bankruptcy |
| services are available. | | | | petition, it will automatically stop the |
| | | | foreclosure process. Depending on the type of |
| 2) As soon as you realize you can�t make | | | | bankruptcy you file, you may be able to work |
| a payment, contact your lender directly and | | | | out a payment plan to keep your home. |
| discuss and weigh all options with them. It | | | | However, understand that once you file for |
| might be possible to refinance or modify the | | | | bankruptcy, it can be reflected on your |
| terms of your payment schedule. Check to see | | | | credit report for seven to ten years. |
| if your lender offers and if you qualify for | | | | |