| A foreclosure can be a scary thing for a homeowner, | | | | as the Notice Of Default is filed. |
| and being well-informed and well-prepared are | | | | There are many options when attempting to avoid |
| essential if he/she wants to keep their home. | | | | foreclosure. The debtor can negotiate with the bank or |
| Often assistance professional is recommended. When | | | | creditor, preferably with the help of a professional |
| a homeowner fails to make payments on his/her | | | | service, to work out one of several options. |
| mortgage for a certain amount of time, usually 3-6 | | | | A "short pay" or "short refinance" is an option where |
| months, the lender starts the foreclosure process. | | | | the a settlement is reached for the amount due and a |
| Hector Milla Editor of the "Best Loan Modification | | | | new loan is created, often called a foreclosure loan. If |
| Companies" website -- -- pointed out; | | | | the borrower does not qualify for a loan covering the |
| “…The process begins when the lender has a | | | | full amount of the settlement, they may get a loan for |
| trustee file a Notice Of Default, or NOD, at the County | | | | part of it and borrow the rest from friends or family. |
| Recorder's office of the county where the home is | | | | A loan modification may be possible, where the terms |
| located. If the borrower does not correct the default | | | | of the loan are changed temporarily to allow the |
| within a certain period, usually 3 months, then a Notice | | | | borrower to get back on his/her feet. A simple |
| of Sale is filed with the County, mailed to the | | | | repayment plan may also be enacted, where the past |
| homeowner, and published in a local newspaper 3 | | | | due amount is figured into the payments until it is paid |
| times over a period of 3 weeks…” | | | | off and the loan is back on schedule. |
| A foreclosure may be stopped at any point in this | | | | A debtor may also work out a "deed in lieu of |
| process, after either the Notice of Default or the | | | | foreclosure". Usually in this case, the debtor trades the |
| Notice of Sale is filed, and sometimes even after the | | | | deed to the home in exchange for a forgiveness of |
| home has been sold at auction(certain states, check | | | | debts, but the terms need to be carefully investigated |
| your local laws, have a "redemption period" in which | | | | to make sure all debts are forgiven. |
| the home can be reclaimed by paying off all | | | | “…There may be other options as well, including a |
| associated debts). The further the process goes, | | | | short sale, friendly foreclosure, or even bankruptcy. |
| however, the harder it will be to stop, so it's | | | | Talk to a professional to find out all the options, and the |
| recommended to begin fighting the process as soon | | | | applicable laws in your state…” H. Milla added. |