Foreclosure Help

Property foreclosures are at record levels across the United States and Canada. In some areas of United States they're up 1,000 percent over last year. The owners of tens of thousands more properties face imminent default as they struggle to cope with their mortgage payments and economic woes.

In Canada, almost half of mortgage applications I received in 2007 were from homeowners with mortgage arrears and this trend continues today.

So what should you do when you receive your first foreclosure notice of sale?

Your best option is not to ignore the foreclosure notice and workout an agreement between you and your current lender to reinstate your delinquent loan through the payment of a lump sum or a schedule of payments over a period of time.

If you got behind in your payments because you lost your job and now you are working again, your lender may allow you to pay the money back through installment payments over three to six months.

Your lender may also allow you to pay a reduced monthly payment until you have the opportunity to get back on your feet and pay any remaining arrears in one lump sum.

This is called forbearance and it may be an oral or written agreement.

If you are not able to work out forbearance agreement then try a loan modification. A loan modification is a change in the terms of your current mortgage loan including decreasing the interest rate and re-amortizing your remaining balance resulting in lower monthly payments.

Generally, your lender will consider a loan modification when your income has been decreased and you are unable to make your mortgage payments on the existing terms, but you will be able to keep the loan current after the loan modification.

Now what if you are not able to workout an agreement with your lender?

Well, you do have more options…

Mortgage refinancing is a good option when a new lender would allow you to refinance existing mortgage, wrap in any late payments and fees, and cash out part of the equity in your home so you can regain control of your deteriorating financial situation.

But that’s easier said than done.

This option may be only work if you had an outstanding credit history in the past and you can prove that you can support the new mortgage payment.

If you are not able to refinance then consider a second mortgage loan to make up any back payments, late fees and other charges necessary to reinstate your loan.

You will be required to make an additional mortgage payment to cover the principal and interest payments on the second loan.

Of course you have other options which include selling your home or bankruptcy but that should be your last option!

I could help you to avoid loosing your home by refinancing your current mortgage or arranging a short term second mortgage loan.

To get started please click here to complete your request online and I’ll get back to you quickly!

Thank you

Joe Malek, AMP
Accredited Mortgage Professional
www.joemalek.com
1-888-292-2156