Stopping Foreclosure: Saving Your House After You've Lost Your Job

For many people who have lost their jobs, the prospect of losing their homes is a major concern - and for good reason. No one wants to deal with the stress and pain of going through foreclosure, being evicted from their homes, and having to find somewhere else to live. And many people see mortgage lenders as being particularly unforgiving - they think that the lender would like nothing better than to take possession of their homes and sell them.

If you've lost your job, the thing to remember is that your lender really doesn't want to repossess your home. Mortgage lenders lose millions of dollars every year on foreclosures, because they can only sell the homes for a fraction of what they're worth.

Not only that, but mortgage companies incur thousands of dollars in legal fees and other expenses every time they foreclose on a home. So it's in your lender's best interest to help you find a way to stay in your house.

It's critical to contact your mortgage lender as soon as you lose your job, even if you haven't missed a payment yet. Being proactive wins quite a few points with mortgage companies, because they see that you are willing to work with them. They will give a borrower who stays in contact a lot more leeway than someone who ignores the problem.

Typically, mortgage companies will offer several options. They may be able to offer you reduced payments for a few months to give you time to find employment. If that doesn't work, lenders are sometimes willing to agree to a forebearance plan. This typically involves a month or two with no payment due, followed by a couple of months of reduced payments.

Be careful when agreeing to a forebearance plan, though, because it will usually involve a large balloon payment after the forebearance period has ended.

Lenders are also embracing the Home Affordable Modification plan that was enacted earlier this year. If you meet the requirements of the plan, your mortgage company will reduce your interest rate and/or extend the term of your loan to lower your payments. This is a great option if you are already a few months behind on your mortgage payment, because lenders will halt any foreclosure proceedings when you are approved for the modification.

And by now I bet you are ready to learn more about your options for fighting foreclosure, right? So then now I would like to invite you to claim your FREE information when you visit http://www.ForeclosureDefenseLawyer.com

You'll get tons of free information about filing for defending foreclosure, dealing with harassing bill collectors, and hitting the reset button on your financial life.

From Jay Fleischman, Esq., Managing Attorney at Fleischman Consumer Law Center.