Foreclosure relief can come in many ways. Paying you mortgage delinquency is the surest strategy. But those behind on their mortgage rarely have the money to make up the arrearage on their mortgage. That’s why they are in foreclosure in the first place. But there are ways to save your home if you are in foreclosure.
Foreclosure does not mean your home has been sold. It means it will be sold if your mortgage can’t be caught up. The foreclosure process starts with the filing of a Notice of Default and Intent to Foreclose. It is a form filed with the county recorder and mailed to the homeowner. If the arrears, or delinquent mortgage payments, are not paid within 90 days, the house will be sold. Foreclosure relief is unavailable after foreclosure sale.
Before the 90-day deadline expires, there are foreclosure relief options. Paying the past-due mortgage is usually not possible. Especially within 90 days. But working with your lender can work. Requesting a modification is a good strategy. Often a modification can put your mortgage arrears at the end of the loan. Doing so can bring your mortgage payments current. It also eliminates the foreclosure sale threat. Sometimes mortgage lenders work with homeowners. Sometimes they don’t. But it is a good option to pursue. There are also government agencies that can hep. Keepyourhomecalifornia.org is a great resource.
Borrowers must be cautious, though. Especially with looming deadlines. Even if a mortgage modification can provide foreclosure relief, it must be completed before the foreclosure period expires. That’s 90 days. That’s not a lot of time to complete a mortgage modification. But it can be done. Outside companies and individuals promising to save your home can be another risk. As this news story points out, beware of scams and pitches by people trying to prey on your foreclosure peril.
Bankruptcy may be a last resort for many. But it is a good one. Often the best for foreclosure relief. Bankruptcy can provide borrowers up to 5 years to catch up on their mortgage. That’s a lot better than 3 months. And federal law prevents a foreclosure sale for those in bankruptcy. You must continue to pay your mortgage while in bankruptcy. You also must provide repayment of your mortgage arrearage through your bankruptcy. But the bankruptcy, know as a Chapter 13, will protect your home. Bankruptcy is a great debt relief tool for those in need.