Learning how to avoid foreclosure is the new normal in today's economy. Millions of Americans have lost their homes to foreclosure in the last few years. If you're having trouble paying your mortgage, you simply have to learn about the steps you can take to avoid foreclosure or to minimize your debt after it happens. This article will look at 5 articles that may open your eyes about foreclosure and what you can do to avoid it.
In the 15 minutes it takes to read these 5 articles, you may find just what you need to keep your home!
How to Avoid Foreclosure
This Forbes article looks at ways to avoid foreclosure for those who do and do not want to keep their home. According to the author, Liz Davidson,
“The biggest mistake people make is to not take any action until it’s too late. They often don’t know that there are alternatives available and they don’t want to deal with the mortgage company. But believe it or not, mortgage companies don’t like foreclosure either since they’re expensive and time consuming for them.”
Here's an option for troubled, underwater homeowners looking for a way to keep their homes: The Deed for Lease Program by Fannie Mae. According to CNN,
“The Deed for Lease program lets homeowners transfer the deed back to their lender and then sign a lease to remain in the home. The effort is aimed at borrowers with mortgages owned or guaranteed by Fannie Mae who do not qualify for or cannot sustain a loan modification.”
This program could buy struggling homeowners the time they need to get back on track or figure out their options.
If you've been struggling to support a family and keep your home, you're not alone. "American Winter" is a recently released documentary about eight families struggling to survive in Portland.
"This film debunks a lot of stereotypes," city Commissioner Nick Fish said Thursday. "Most of the families are middle-class families, who played by the rules. None are asking for special treatment. One pink slip, one sick child, one unforeseen crisis, and they go from middle class to completely vulnerable.”
If you're in this situation, the film is a must-see! In the meantime, check out Steve Duin's synopsis.
Behind every foreclosure is a story of a person's life. These stories are often tragic, but it is crucial to pay attention if you hope to avoid going down the same path towards foreclosure. What the stories in this article also demonstrate is that banks are making a lot of “mistakes” – mistakes that ruin people’s lives – and are not being held accountable for them. On the other hand, if a homeowner makes a slight mistake like missing a payment, then the bank may jump the gun and initiate foreclosure proceedings.
The two big keys here are to get IMMEDIATE foreclosure help, and keep the lines of communication open with your lender.
Now that you're all depressed from the above article, we should look at the flip side; those who were able to avoid foreclosure and the headache and heartache it causes. Check out the article to read more about the stories of the following two women:
- Laura Tellez had a 30-year, subprime adjustable-rate mortgage and started out paying $996 a month. "And then it went to $1,400. The next thing I know I got a letter and it went up to $1,600.”
- Judy Viola of Cortez, Pa., near Scranton, said she and her husband, Frank, bought their home in 1988 for $76,500, with a mortgage interest rate of 8.7 percent. Their health flagged and the couple faced 18 months with no pay.
Trying to Avoid Foreclosure in Chicago? Get a Free Consultation Today!
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