| It is estimated that more than 3 million homes will be | | | | do this you will need to be able to show you can |
| foreclosed through 2009. This is worse than what | | | | make the payments. If your credit is currently bruised |
| happened during the Great Depression. The reasons | | | | this may not be the solution for you. |
| for this are many. The simplest reason being | | | | 2. Be released from the responsibility of the property. |
| homeowners allowing themselves to get into | | | | This is done by having investors buy out your position |
| mortgages they couldn't afford. To be fair the | | | | in the home. If you are in the situation of not being able |
| economic landscape in the US has been changing | | | | to make the payments then this could be a good |
| rapidly over the last decade and what was affordable | | | | option for you. |
| 10 years ago is now not so affordable. Predatory loan | | | | 3. Get a short-term loan so you can reinstate your |
| processes used by lenders has only made what is a | | | | loan. This solution will stop the foreclosure process fast |
| tough situation that much worse. If you find yourself in | | | | and get the creditors to stop calling. However if you |
| the situation that you can't pay your mortgage or are | | | | are already in the situation where you can't make your |
| on your way there then no time should be wasted to | | | | payments then doing this is probably not the solution |
| remediate the problem. Here are some ways to stop | | | | for you. |
| the process. | | | | Lease Purchase Agreement |
| Debt Counseling | | | | With a Lease Purchase Agreement you find a tenant |
| There are now numerous companies who will provide | | | | who will agree to buy your house in 12 to 24 months. |
| debt-counseling services. They will work with your | | | | You structure the deal so they end up paying your |
| lenders to get a modified payment plan and also can | | | | monthly mortgage. You get a 1% to 3% lump sum |
| advise you on refinancing or selling your home. Keep in | | | | payment from them that is non-refundable. Since you |
| mind the bank that owns the mortgage could be willing | | | | are only asking for 1% to 3% of the home price |
| to work with you to prevent the foreclosure because | | | | instead the traditional 10% to 20% it is much easier to |
| the bank is not interested in having to maintain an | | | | find people to buy the house. The reason people are |
| empty house. | | | | interested in doing this is that some people have the |
| Loan Consolidation | | | | money but have bad credit. The 12 to 24 month time |
| There are a number of foreclosure loan companies | | | | period allows them to repair their credit and lock in the |
| that will to give you a FREE consultation on your | | | | price of the home. |
| current situation. You should skip past the companies | | | | If you are in the stressful situation of foreclosure or |
| that ask for a fee for this. These companies can | | | | pre-foreclosure then you need to take action. The |
| provide the three possible solutions: | | | | above three methods will give you a good start at |
| | | | stopping the process. The sooner you take action the |
| 1. Provide private or institutional lenders to assist the | | | | better. |
| homeowner. In this solution you will get a new loan. To | | | | |