Foreclosure is bad business for the homeowner. It leaves him and his family without their home, damages his credit score a great deal, and causes personal embarrassment. People in Houston, Amarillo, and El Paso all want to learn how to stop foreclosure in Texas so they can remain in their beloved homes without worry. The following will offer some tips to help these folks accomplish their goal.
Pittsfield, MA -- (SBWIRE) -- 12/24/2012 -- No one asks to be foreclosed upon. No one wants the blight this puts on their credit standing. And no one wants to be turned down repeatedly for new credit after a foreclosure. So what are these people to do to stop foreclosure in Texas, or anywhere else in the United States? The most important thing is to communicate with the mortgage holder. Sit down with a lending institution representative to find out if a new repayment plan can be arranged so one can catch up on the back-due amount and still be able to handle the payment. Most banks, credit unions, and other lenders have in-house plans to refinance or modify a mortgage loan and they’re willing to work with their customers to avoid foreclosure. Lenders don’t enjoy foreclosing; it costs them money and they seldom recoup their losses after the property is sold, so it’s really not very effective for them to do it.
The government offers some assistance to struggling property owners, too. In 2009, the Obama administration put together HAMP, or home affordable modification program. This program can be a godsend when trying to stop foreclosure in Texas. The idea is to keep hard-working Americans who’ve fallen on tough times in their homes by modifying, or changing, the terms of their mortgages. This change can be lowering the interest rate of the loan or lengthening the term of repayment of it. Whichever change is made, it can result in cutting a mortgage payment by up to 40%, making it much easier for the homeowner to afford. There are several requirements one must meet to qualify for this program, including having gotten the original mortgage loan on or before January 1, 2009, owing a specific amount on the property, and being able to show proof of both financial hardship and the ability to pay the adjusted rate.
One other suggestion to stop a foreclosure in Texas is to utilize the equity in the home. This is worth money, which can be applied to the past due balance of the mortgage as well as to getting a step ahead of the current payments. Talk with the lien holder to find out how to do this.
Credit-yogi.com, an online marketing company located in Pittsfield, Massachusetts, has more information about this subject and is happy to share it with interested parties.