Foreclosure is not an instantaneous process. There are many legal layers that the mortgage holder must go through to seize a home from a delinquent bill payer. Those who are in jeopardy of foreclosure will get several windows of opportunities to try to avoid the devastating legal process. There will be a series of warning letters and phone calls and during that time, homeowners on the edge can work on refinancing before their foreclosure goes into affect.
The federal government has a national system of HUD sponsored housing counselors that will provide free or low cost advice to consumers fearful of losing their homes. The counselors are extremely knowledgeable and will assist people who are past due on their mortgage payments work with their lenders to refinance their loans before a foreclosure. The key to the success of this program is contacting the counselor early enough to help resolve your problem.
If you are an individual who has missed your second mortgage payment, you may notice that your phone is ringing off the hook and your lender is trying to get a hold of you. Do not ignore that call and speak to your lender directly. If you explain your situation, they may be willing to renegotiate your loan directly with you and help refinance your mortgage before foreclosure.
Additional good news is on the horizon for millions of other homeowners who are in financial jeopardy with their mortgage. President Obama has just recently proposed a $275 billion plan to help brace up the struggling real estate industry. Obama’s plan would provide financial options to qualified homeowners and the lenders willing to work with them. The goal is to help prevent 9 million individuals from entering foreclosure.
Obama stated that the real estate stimulus is aimed “rescuing families who have played by the rules and acted responsibly.” If you are one of those people, you may be able to refinance your mortgage before a foreclosure very soon.