Countless problems and complications and most of them are financially-related was brought upon by the global recession. Mortgage foreclosure is just one of the primary problems faced by the homeowners nowadays and it is possibly the most damaging to the families as it could mean the whole family to end up living on the streets.
Nonetheless, there are still lifelines for those in this predicament of possibly losing their homes. Find out these tips here.
1. Utilize government help to stop foreclosure! In tandem with the current economic situation, President Obama and his cabinet has stepped up efforts to help those struggling with mortgage payments to deal with this situation effectively. Obama’s Loan Modification Plan and Mortgage Modification Plan are two ways of how you could successfully re-finance your home, and finish with lower monthly payments for your home so that you can cope better in these difficult times.
2. Make use of the hardship letter to negotiate with your creditors. Many have used this option before successfully to salvage their homes, and you could definitely be one of them! A hardship letter explains to the creditors of your current financial situation and difficulties, and seeks a reprieve and extension to your usual monthly payment schedule so that you can catch up on the payments without having your home facing foreclosure.
3. Seek help from non-governmental agencies such as debt relief and debt management companies so that they can assess your current situation and help you overcome it. Some of these firms could also negotiate with your creditors on your behalf, and as they have more experience of dealing with such matters, could be more successful in obtaining a good deal for yourself to save your home. Make sure however that you are dealing with legitimate, legal agencies so that you do not fall into a bigger financial mess.
4. Declare bankruptcy - this would be a drastic move, but would successfully eliminate foreclosure proceedings against you, and leave you debt-free. And while your bankruptcy proceedings are underway, you could use the time allocated to you to look for another place to stay, this would avoid the situation of you and your family ending up on the streets.