foreclosure real estate

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Faced with the threat of a on their home, withall the weight of the mortgage industry and its army ofattorneys against them, the average homeowner might feellike David facing Goliath. But David defeatedGoliath ! David had a sling and some pebbles.

You have an armory of tactics and options which can enableyou to stop proceedings in their tracks.

There are certain basic rules to follow if you want tostop on your home. *** Do not leaveyour home. If you do, you may lose your eligibility forassistance. *** Do not speak to the lender's Collectiondepartment, especially over the phone. *** Neverspeak to any of your lender's representatives without havingall your facts assembled, and your strategy determined.

*** Don't ask the lender what your options are - know your

options before the real discussions begin. Know and beprepared for the questions and forms you will be facedwith. *** Don't volunteer the fact that you are eitherunemployed or insolvent, or you're dead in the water.

(If you are either unemployed or insolvent, you'd betterchange things pretty quick, for the lender has to beconvinced that you have the means to meet the loanrepayments, and he will want to see evidence supporting thisfact before he will stop proceedings.)

*** Don't rely on your memory - have everything written down

clearly, and all your credit history records at hand.

*** Speak to the lender's Loss Mitigation or Foreclosure

department. Be firm, and insist on speaking to the rightpeople every time. *** Make a real effort tounderstand the legal terms relating to mortgages. To stopforeclosure proceedings, you need to speak the same languageas your adversaries. If you cannot fully understand theoptions, or the terms used, you should certainly speak to aHUD approved counselor - ring (800) 569 4287. And dothis as soon as you realise you might be heading for

foreclosure. Know your options ! Know your rights !

contact the lender and request a loan modification, which

effectively changes the terms of the loan to lower thepayments. This is a very common process, but you will needto provide evidence about the change in yourcircumstances. If you feel that you qualify for a loanmodification, and your lender refuses, contact the HUD foradvice. Stop - Tip 4 If yourloss of income is temporary, contact your lender and requesta forbearance. This means that you may be granted a periodduring which your monthly payments are "suspended", after

which you must resume your monthly payments plus a partial

payment towards the payments you missed. Most lenders have aforbearance program, but may require you to make an initialdown payment. Stop - Tip 5 Ifyou have a FFA/HUD loan, you may qualify for a partial claim

if the present loan is between 4 months and 12 months

delinquent. The partial claim has to be repaid only afterthe original loan has been repaid in full. Any of thesemeasures can enable you to stop on your

home. Stop - Tip 6 If all elsefails, you could always file for bankruptcy at any timeduring the lender's collecting process, and this would put

an immediate stop on the lender's activities. Unfortunately,new bankruptcy reform legislation, to be introduced inOctober 2005, will effectively invalidate this tactic.

Under the new legislation, you must receive creditcounseling from an approved agency 180 days - yes, that's 6months - before you can file for bankruptcy. By whichtime the lender could have filed for foreclosure, and youcould be out of your home. Stop - Tip7 Remember these facts. The US is facingan ever-increasing tidal wave of homeowners defaulting ontheir mortgages. The average cost to the mortgage industryfor each is around $25000 ! Foreclosurescost lenders money, big money, so it is in their intereststo reach a workout with the borrower, either to rescue themortgage, if this is possible, or to reduce the loss as a

result of foreclosure. Don't be intimidated by the lender orhis attorneys. Appraise yourself of your exact financialposition. Seek advice. Know your rights. Know your options.Be honest in your statements. Keep a written record of allcommunucations. You can stop in its tracks.And save your home.

About the author:

After 15 years working in the IT industry, author BrendanForde is now specialising in the financial world, particularlythe mortgage and insurance sectors.

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