Bringing the loan current means that you pay the total amount past due

Bringing the loan current means that you pay the total amount past due

You can stop the foreclosure process by informing your lender that you will pay off the default amount and extra fees. Your lender would prefer to have the money much more than they would have your home, so unless there are extenuating circumstances, this should work. Unfortunately, this option isn’t viable for most people, because most people don’t have the money to bring their loan current.

If you cannot make your monthly mortgage payment, you can try modifying the terms of your loan. Modifying the terms of your loan may reduce your monthly payments or interest rate, depending on what your current circumstances are. According to Dickson Frolich, HASP is intended to help homeowners who owe more than their home is worth or who have more debt on their home than income.

You don’t want to lose your home, but foreclosure may be inevitable. In order to avoid some of the problems that come with foreclosure, you can attempt a short sale on your home. Before you do this, though, you need to get permission from your lender, or you may end up in significant legal trouble. The purpose of making a short sale is to sell the home for enough money to make up what you owe to your lender. If you aren’t able to sell it for that amount, you may have to pay the remaining balance of the loan. A short sale isn’t always a good option, so make sure you do your research before you decide on this option.

Bankruptcy should only be used as a last resort because it has some pretty severe consequences and it may not be successful in allowing you to keep your home. When you file for bankruptcy, all lenders and creditors you have are given a stay on your loans, meaning they can’t collect until your bankruptcy case has been settled, but this stay doesn’t last forever. Read More