| Most foreclosure relief companies offer one, two, or | | | | information from their credit reports, as well as |
| maybe a handful of various options that homeowners | | | | establishing a positive, on-time payment history again, |
| can use to stop foreclosure. While receiving an | | | | regardless of past history. Within a few months to a |
| immediate solution to the situation, the homeowners | | | | year, previous foreclosure victims can raise their credit |
| are not confronting the real problem, of which | | | | scores by 50, 100, or more than 100 points, allowing |
| foreclosure is just a symptom. It is just as important | | | | them to qualify for competitive interest rates without |
| that foreclosure victims start putting together a | | | | relying on confusing Adjustable Rate Mortgages or |
| long-term financial plan to prevent the devastating | | | | interest-only loans. |
| effects of another financial hardship. Here we examine | | | | By the end of a year or so, the fourth step in the |
| a simple five-step program to completely stop | | | | process will be ready. This involves refinancing the |
| foreclosure and repair their credit and begin a | | | | current home or repurchasing a new home. After a |
| long-term financial plan. This program gives foreclosure | | | | year of sticking to a budget, planning for any |
| victims the resources to pursue every single known | | | | emergencies, and repairing their credit, the foreclosure |
| way to save their homes. If they end up facing the | | | | victims will be in a situation where they can qualify for |
| loss of their homes and have to rebuild, it will not be for | | | | some of the best rates for home mortgages. They |
| lack of trying every method possible. And even if the | | | | may end up lowering their payments by several |
| worst happens, this simple process is designed to | | | | hundred dollars a month, or they may qualify to |
| clean up their credit and put them back into a house | | | | consolidate all of their monthly debt payments into one |
| within a year after foreclosure. | | | | cheaper, more manageable mortgage obligation. This is |
| The firs step in this process is to reverse the | | | | when homeowners transition from the short-term |
| foreclosure process. Homeowners who have not | | | | financial recovery phase into the long-term financial |
| been paying their mortgage need options to stop | | | | independence plan. |
| foreclosure and they need to be working on as many | | | | The fifth and last step in the process to be rewarded |
| options at once. This may include looking for a private | | | | with the feeling of having become financially |
| investor, working with the mortgage company to put | | | | independent. This may mean having established a |
| together a repayment plan or loan modification, or | | | | significant emergency fund and consolidating all debts |
| going through our list of foreclosure loan specialists. But | | | | into one payment, and it may mean having paid off the |
| the first goal for homeowners is to stop the | | | | house completely and being able to retire early due to |
| foreclosure process from running them over before | | | | a wise retirement plan. But at this point, homeowners |
| they are out of options and out of time. | | | | will never have to worry about any financial hardship |
| Recovery from the devastating affects of foreclosure | | | | again, as they will have the tools and knowledge that |
| is the second step for homeowners. This includes | | | | will allow them to survive any emergency. Whether it is |
| putting together a short-term plan to begin an | | | | a loss of job, medical disability or death, or divorce |
| emergency fund and a long-term plan to make sure | | | | separation, the family's emergency fund will be able to |
| that any financial emergency can be survived without | | | | get them through any problem. |
| a disaster. Regardless of being able to stop | | | | Completing these five steps, from the plan to stop |
| foreclosure or not, families who have faced the loss of | | | | foreclosure to the plan to become independently |
| their homes should have a comprehensive financial | | | | wealthy and financially stable, should be the mission of |
| plan and budget that outlines their spending habits and | | | | any homeowner currently facing foreclosure due to a |
| provides structure to their monthly budget. That way, | | | | financial hardship. Every single homeowner, whether |
| they may never fall behind on their debts again. | | | | they are living paycheck-to-paycheck or are financially |
| Cleaning up negative information on their credit reports | | | | independent, is currently in need of a comprehensive |
| is another important step to repair their finances | | | | financial plan to insure against the loss of their homes |
| completely from the foreclosure situation, and is the | | | | to foreclosure. From learning how to stop foreclosure, |
| third step in this process. Homeowners should take the | | | | or how credit repair works, or how to retire early and |
| chance to repair their good names and credit histories | | | | never work another day in their lives, homeowners |
| by using the resources available to them either through | | | | can come out of their current financial difficulties with a |
| self-help resources or by using a reputable company | | | | long-term solution and start living the life they have |
| for assistance. This step includes removing negative | | | | always dreamed of. |