In the wake of the bursting of the subprime mortgage bubble, home foreclosures are occurring at record-breaking levels all across the country. 2012 is shaping up to be another hard year for homeowners with over 1 Million homes already foreclosed upon as of June 2012, according to Realty Trac.
For the first time in U.S. History, the number of homes foreclosed upon will hit over 2 Million annually for the third year in a row.Â In the midst of these troubling statistics, there is some light at the end of the tunnel for property owners facing the loss of their home to foreclosure.
Going through a foreclosure is a devastating experience for a homeowner and their family. Many property owners are not willing to give up without a fight. The good news is that there are options available that may enable them to save their home.
Two of these common options are:
Loan Modification: If a homeowner is unable to make payments on their mortgage, the lender may agree to modify or rework their loan in order to give the borrower the opportunity to catch up. This may come in the form of a reduction in interest rates or attaching an agreed-upon number of payments to the back of the loan. There have been several settlements with the government that have created very beneficial modification programs that your lender may have access to.
Forbearance: Seen mainly as a short-term solution, forbearance is basically an agreement between the borrower and the lender to suspend or reduce payments for a certain period of time. This option is designed to give the borrower some time to get back on their feet financially.
It would also be beneficial for a homeowner facing foreclosure to find a lawyer who is experienced in foreclosure defense. Hiring a foreclosure defense attorney will provide the borrower with a much-needed advocate in their dealings with banks and lenders and will send a clear message that the property owner is serious about keeping their home.
Foreclosures are also as costly to your mortgage company as they are to you. Therefore, they are often willing to discuss possible solutions with borrowers. Having a knowledgeable foreclosure attorney on hand can have a significant impact on this process. A foreclosure defense lawyer will be able to negotiate terms and mediate between the borrower and the lender to come up with a plan that can satisfy both parties.
This blog is written and published by Godbey & Associates.