Despite a decrease in foreclosure rates over the past few months, many homeowners are still struggling to make their mortgage payments. This has resulted in them facing the possible loss of their homes.
Pittsfield, MA -- (SBWIRE) -- 02/18/2013 -- Credit-yogi.com wants these folks to know that there are many ways to stop the foreclosure proceedings, including:
- Refinancing the mortgage
- Modifying the mortgage
- Requesting governmental assistance
- Declaring bankruptcy
Refinance the Original Mortgage
When it becomes evident that it is becoming difficult to make one’s mortgage payment, the first thing to do is make an appointment with the original mortgage lender. Ask if the mortgage can be refinanced. This means, in effect, that the first mortgage loan will be paid in full and a totally new one will be devised. The new one will have better terms, such a lower interest. Refinancing is a great way to stop foreclosure for free because one does not have to put any money down on the new loan.
Ask for Mortgage Modification
If refinancing isn’t the method one wishes to employ to lower his mortgage payments, perhaps loan modification will work. When a loan is modified, changes are made to it. It is not paid off as when it is refinanced; it simply has a few changes written into the mortgage loan. Modifying the mortgage can stop the foreclosure process because it makes the monthly payments more affordable for the homeowner.
Help to Stop Home Foreclosure Requests With Credit-yogi for More Guidelines
Petition President Obama
The Obama administration helps a homeowner who is having difficulty handling his mortgage payment. In 2009, the administration devised a plan for keeping troubled homeowners in their homes. HAMP (Home Affordable Modification Program) can help stop foreclosure for free, as there is no money down required. Through HAMP, a person can apply for loan modification or refinancing. He can also request veteran’s assistance if he has served in the armed forces, and if he has lost his job recently, there’s a plan for that through HAMP as well. Applying for HAMP aid can be done through any participating lender.
Filing for Bankruptcy
This is an absolute last option. If one is denied loan modification through banks and through HAMP, it may be time to look into bankruptcy. Bankruptcy is a legitimate way to stop the foreclosure process, as it can clear all of one’s debt in some cases. Work with a bankruptcy attorney to decide whether Chapter 7 or Chapter 13 bankruptcy is better for one’s situation. Do not make this decision lightly; it stays on a credit report for up to 10 years.
Credit-yogi.com is a well-respected consumer resource website located in Pittsfield, Massachusetts that has over 260,000 legal and financial experts backing it up. The website is free to utilize and plays an important role in connecting people who have questions with the professionals who have answers. To obtain a free initial consultation, call 866-964-9644.