How to Avoid Foreclosures

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How to Avoid
Foreclosures




Contents
Introduction...&………………………...1
In the early days of the financial crisis and the spate



of foreclosures that followed, many buyers with
Speak to Your Lender...……..……...2
mortgage payment problems just gave up. America

Repayment Plan..……………………….2
subsequently realized that foreclosures were

helping nobody – between them, the government
Mortgage Modification……………...2
and the banks put measures into place to help avoid

Short Sale……………………………….....3
foreclosures. If you are having difficulty paying for

your home, then this is what you ought to do.
Chapter 13 Bankruptcy…….…….....3





Speak to Your Lender
2
Speak to your lender immediately you sense you might be

getting into difficulties, and if possible before you miss a
payment. If you wait instead until you receive a default
notice, they may be less inclined to help, because your


failure to contact them first has already cost them money.









Repayment Plan

See if you can arrange a repayment plan that works for you
and for the bank. This involves a program to catch up on
missed payments over several months, and is the ideal way to
avoid foreclosures because your credit record remains intact.



Mortgage Modification


What’s does that mean?
Discuss a mortgage modification with your lender. In terms
For more terms and definitions,
check out ForeclosureDeals.com’s
of this, the interest rate comes down or part of the outstanding
glossary page:
http://www.foreclosuredeals.com/G
balance is forgiven. Be careful with the latter, though. If a part
lossary.php
of, or an entire debt is wiped clean, you will be marked down

on your credit record because money was not paid.






3

Short Sale

Foreclosure Deals

12550 Biscayne Blvd, Suite 306
Speak to your bank about a short sale in terms of which
Miami, FL 33181
FAX: 1-347-402-6620
the balance on your housing loan will be forgiven. This is
[email protected]

an attractive option too, except for the impact on your
If it’s not a deal, we won’t list it here!

credit record once again.
Find us on the Web:
http://www.ForeclosureDeals.com/











Chapter 13 Bankruptcy




If all else fails, file for Chapter 13 bankruptcy before the

bank forecloses. Rather than become another debtor in the

queue, the bank may decide to become more obliging
instead. This should not be necessary though, because the
law requires that lenders do everything they possibly can
to avoid foreclosures.