If you have been unable to make the monthly payments for your home mortgage, it is time to consider the legal actions that you can take to prevent foreclosure.
First of all, it should be pointed out that a foreclosure is a legal process in which your lender will try to legally take hold of your property for the purpose of selling it to recover the amount that you were unable to pay. Secondly, it should be noted that if the amount that the lender was able to get from selling your property is insufficient to cover your home loan balance, he might have the right to sue you to take hold of your other assets.Â
The National Servicing Center of the Federal Housing Administration (FHA) provides assistance to homeowners in collaborating with lenders on how to look for creative solutions to prevent foreclosure. In some cases, the FHA will put on temporary hold on the foreclosure of loans that are being reviewed for possible issues such as predatory lending.
A possible legal action to take to avoid foreclosure is to talk with your lender and try to workout a solution. The most common workout solution is the forbearance agreement in which you will be permitted to repay the delinquent amounts for a certain period of time, such as six to 12 months.
However, you must be able to provide the lender with an acceptable explanation for the delinquency and prove that the situation was only temporary.
An extension of the forbearance agreement is the delayed repayment plan, which would be applicable if you are currently undergoing a hardship. The lender will agree to temporarily reduce your payments while your hardship persists but you will eventually have to pay larger amounts once your hardship, such as a stay in the hospital, has ended.
Another solution to prevent foreclosure where you get to keep your home is the loan modification where the lender agrees to add the unpaid amounts to your loan balance and then extends the duration of your loan. However, the lender will not agree to a loan modification if you have been delayed in your payments for more than 12 months and if you have not yet paid a substantial amount of the equity.
Another possible solution if you are unable to reach an agreement with your current lender is to find another lender for a second mortgage. However, this will only be possible if the balance of your loan is much smaller than the current value of your home. Obviously, this would not work out for those who have upside down mortgages or those who have just started out their loans.
You may also enlist the help of non-profit credit repair agencies that will strive to may you solvent within a span of two to five years. If all else fails, you can declare bankruptcy although this will negatively affect your credit score for several years. However, it will provide you with time to pay off your debts while keeping your home and other assets.
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Hello, I have been researching information about Chase Home Finance, due to alot of problems I am having with them. I have found some helpful information on here and would love to know more. I have help from a housing authority on this matter, but they to are getting the run around. We want straight answers…Please can you help…this is about a forclosure matter that they are trying to do to us.
I didn’t respond to my NOD, etc until I was 13 mos w/ no pymnt on two HELOC’s that are 3rd and 4th in line.
In 20 minutes on the phone, the woman wrote my hardship letter, filled out the financials and offered 2yrs @ 2.75% and a halving of that computed amount as well. Had to bring the past due to 7 mo’s though. Variable rate thereafter.
Got an Atty to try and remove monies from the principle amnt, or refi the reamaining -we’ll see.