Stopping Foreclosure

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A foreclosure is something that we would all like to avoid as much as possible but due to various circumstances, there may come a time when such an occurrence is inevitable. It would be beneficial then to become familiar with the ways and means of stopping foreclosure in order to be fully prepared when the time comes.

When a bank or lending institution files a Notice of Default against you as a property owner, it becomes obvious fairly quickly that your options are limited. This is why it is tremendously important to call your lender before you begin to fall behind on your payments, if you see this coming up at any time in the near future. Most lending institutions are typically reluctant to work out a repayment schedule for you once foreclosure proceedings have begun, and they will definitely be more open to finding solutions to your dilemma before the fact.

Lending institutions will usually give you a certain time period in order for you to bring your payments up to date and to pay off the costs of filing the foreclosure, as well as to stop foreclosure proceedings. This process is commonly known as a reinstatement of your loan.

But what if in spite of all this, you still cannot make up the missed payments and the lending institution in question is less than agreeable to finding a mutually beneficial solution? In this case, you still have a few other options open to you for stopping foreclosure. Some of the most effective ones are outlined below.

Sell Off Your Home.
One thing you can do is to interview real estate agents in your area in order to get a better idea of the current market value and average DOM of selling your home. While you may think that hiring a discount broker would be good enough for your needs, the added exposure and marketing services that a full-service broker offers may prove to be a better solution. Try to determine what your specific needs are especially with regard to time frame before you make a decision.

Look Into A Short Sale.
If the current value of your home is less than the amount that you owe, it might be a good idea to look into a short sale. This move will still affect your credit standing but not in as negative a manner as a foreclosure. In addition, you or your agent will probably have to strike a deal with your lender to find out if you can undertake a short sale. This procedure is called redeeming a pre-foreclosure.

Apply for a Deed-in-Lieu of Foreclosure
This procedure is known as deeding the home back to the lender and the process involves you as the homeowner giving the lender a notarized deed to the effect that the lender rescinds the mortgage and cancels any foreclosure proceedings. Deeds-in-lieu of foreclosure typically have the same effect on a borrower's credit as a foreclosure, with the difference being that the home owner may be able to continue living in the home until finding an alternative place to live in.

Ephren W. Taylor II first revealed his extraordinary knack for making money at age 12 and he hasn't slowed down since. He was a self-made millionaire while still in his teens. In his twenties he became the youngest African-American CEO of any publicly traded company ever, City Capital Corporation (CTCC). Today Taylor and City Capital oversee tens of millions in assets for clients ranging from entertainment icons and pro athletes to church members and private companies. He is a dynamic speaker and author of the best seller "Creating Success from the Inside Out." Learn more at CashFreeInvesting.com, IRACashFlow.com or Ephren.com.

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