Fortunately, the foreclosure rate has decreased over the last year or so. Unfortunately, some folks are still facing this process.
Pittsfield, MA -- (SBWIRE) -- 02/18/2013 -- Credit-yogi.com wants people to know the facts about home mortgage foreclosure, including:
- What Foreclosure Means
- How to Stop Foreclosure
- Foreclosure Expense
- Where to Get Help
When a lender forecloses on a homeowner, it means that the financial institution is reclaiming the house due to non-payment of the mortgage. American home mortgage foreclosures were happening at a shocking rate just a few years ago, but have become less common recently. Not only does foreclosure mean losing one’s home, it means enormous damage to one’s credit score. This can be as much as a 200-400 point loss, and that makes it very tough to obtain new credit for a very long time.
People Who are Looking to Stop Home Mortgage Foreclosure can Request with Credit-yogi for Qualify Guidelines
There are several ways to stop home mortgage foreclosure, including getting a mortgage loan modification or refinance. A loan modification is simply making changes to one’s original mortgage. A mortgage refinance is a little more complicated. With a refinance, the initial mortgage loan is paid off, usually by a different lending institution. A brand new mortgage is then written up, one that has a lower interest rate or a longer repayment period. If one does not qualify for either of these helping hands, read on to find out where else to apply.
Cost of Foreclosure
Banks and other financiers do not like to foreclose. It can cost them tens of thousands of dollars, up to 40% of the home’s value. American home mortgage foreclosures also cost the homeowner. He has to leave the home he’s grown to love; his credit is demolished for up to 7 years; and it becomes nearly impossible for him to obtain any sort of new credit or loans. He may find it hard to start rebuilding his credit, too. Even getting a secured credit card (one for which he puts a certain amount of money in an account and the issuing lender gives him a line of credit to equal it) could prove troublesome.
Obtaining Mortgage Loan Assistance
Home mortgage foreclosure can be devastating. That said, understand that there are ways to stop the process before it takes one’s home. As mentioned above, if one’s first lender cannot help with refinancing or modification, look elsewhere. For example, there are tons of online lenders that would be delighted to receive some business. There is also the federal government. HAMP and HUD offer many ways to prevent foreclosure from uprooting a family. Apply for such aid at any participating financial institution.
Credit-yogi is a consumer’s dream website located in Pittsfield, Massachusetts. It is backed by nearly 300,000 legal and financial whizzes, and there is never a fee to use it. For a free initial conference, dial 866-964-9644.