Foreclosure: Don't start packing your bags yet!

By: Chris Taylor
Foreclosure, one of the most difficult time anyone can endure. All one can think about is where am I going to live. Many people are falling behind on their loans. The main reasons are as follows: Loss of income and rising expenses. Loss of income can really be attributed to recent unemployment data, companies cutting back on overtime, and bonus income. Injuries, death and divorce are also common characteristics involved when a borrower cannot meet their mortgage payment.

Rising expenses, people have seen their fuel costs double, groceries and other staples increase throughout the recent years. We are seeing the mortgage payment actually increase by as much as 50%. Overall financial stress is bearing down on the homeowner and there is nowhere to turn to for help, until now.

Loss Mitigation or Loan Modification is where the borrower and lender come to a common solution to prevent foreclosure. The borrower can’t get a loan so why not work out a deal with their existing lender. We see borrowers who are current to one year behind on their mortgage. Good news is all of them are still in their house and working on a better situation than they are currently in. Many customers have their bags packed by the time we talk with them. We tell them to unpack and hunker down.

Borrowers usually have more options than they think to maintain homeownership, find out now what options are available to you.