So, your house is in foreclosure… Now what? Try to look at the situation without getting attached to her emotions. From a strictly business standpoint, you can most successfully analyze which option best meets your needs and desires and move toward resolving your financial hardship. One very important thing to remember: time is of the essence, so take quick action to allow yourself plenty of time to complete your chosen process. There are over 50 techniques a person can use to save their home from foreclosure. Here are some of them below:

1. Do Nothing – If a homeowner does nothing, they will most likely lose their home at a foreclosure auction. Loan applications usually ask if the applicant has ever been closed. Credit reports also reveal this harmful information.

2. Payoff/Refinance: Full payoff of the full loan amount plus any default amounts and fees. It is usually achieved through a debt refinancing. New debt typically carries a higher interest rate and there may be a prepayment penalty due to recent default. With this option, there must be equity in the home.

3. Reinstatement: Payment of the full default amount plus interest, attorney fees, late fees, taxes, late fees, and fees.

4. Loan Modification – Use existing mortgage company to refinance debt or extend loan terms. This may allow the owner to upgrade to a more affordable level if they qualify.

5. Forbearance – The lender can arrange a payment plan based on the homeowner’s financial situation. The lender may even provide a temporary payment reduction or suspension of payments. Information will be required from the lender to demonstrate that the lender can meet the requirements of the new payment plan.

6. Partial Claim: An FHA loan for a second loan including late payments, costs and fees.

You should be aware of any special rights you may have! In January 2001, the US Department of Housing and Urban Development (HUD) issued guidelines requiring all borrowers with FHA loans that are subject to HUD regulations to be informed of their rights to the programs resolution of mortgage loans. See HUD ML2002-12. The Veterans Administration (VA) also has many rights that can keep a Veteran out of foreclosure. You may be eligible for federally required FHA/HUD or VA loss mitigation assistance from your lender to stop foreclosure by:

* Reduce your interest rate
* Extend the time to repay your loan
* Put your past due payments on your loan balance
* Put past due payments at the end of your loan
* Sell your house for less than what you owe the bank
* Give the house to the bank or the government in exchange for what you owe

Email now for more information on the free Stop Foreclosure Hotline to find out if you qualify.

7. Deed-in-Lieu of Foreclosure: Returning the property to the bank in lieu of the bank’s foreclosure. Banks generally require that the house be well maintained, all mortgage payments and taxes must be up to date. Most loan applications ask if this has ever happened.

8. Bankruptcy: This option may discharge the debt and/or grant more time. I can refer you to a qualified bankruptcy attorney.

Chapter 7 (Liquidation) To completely liquidate the personal debt.

Chapter 13 (Salaried Plan) Payments are made toward a plan to pay off debts in 3 to 5 years.

Chapter 11 (Business Reorganization) A business debt solution.

The new bankruptcy laws have pushed a record number of Americans into bankruptcy. See just a few of the changes below:

A means test may be required If your income is above the median for your area and you file for bankruptcy, the law requires that you be subject to a means test to see if you can have the extra money for a plan payment. If you don’t, you can file for a Chapter 7 discharge, which wipes out most of your unsecured debt, like credit cards and medical bills.

However, if the means test says you can pay some of your debts, you are referred to a Chapter 13 repayment plan.

Taxpayers must attend mandatory credit counseling sessions, which credit counselors say don’t do much good.

It increased basic filing costs by about $200, as well as the time it takes attorneys to prepare a case, by at least 50%, making the process more expensive for people who are already bankrupt.

It increased basic filing costs by about $200, as well as the time it takes attorneys to prepare a case, by at least 50%, making the process more expensive for people who are already bankrupt.

The bankruptcy reform law, as written, requires prioritizing credit card companies over the duties of one’s faith according to Littlefield’s decision.

9. Sale: The homeowner can sell the home without lender approval for a conventional home sale. If the property has equity (money left over after all loans and money liens are paid off), the owner will get cash from the sale. On the other end of the spectrum, your real estate professional can negotiate a short sale, also known as a pre-foreclosure sale, with your lender if what is owed is more than the property’s value.

10. Short Sale – Negotiated Agreement” or “Short Payment” occurs when a lender agrees to accept less than the amount owed to pay off a loan as an alternative to foreclosure. If the property is worth less than the amount owed on the loan, then even if the lender forecloses and repossesses the property, they know they are going to take a loss trying to sell it later.

11. Debt Validation – Ask the lender to show proof of debt. The lender has 30 days to show proof or the debt must be removed from your credit report along with all negative comments. A variation of this can be used to stop or halt a pending foreclosure for at least 1 year, if not much longer. Many homeowners have used this technique to stop their pending foreclosures for years and remained in their homes without paying their mortgage.