Just two missed mortgage payments can begin foreclosure proceedings and before you know it the home you have worked so hard to keep can be snatched away from you. To make matters worse, you may still end up owing money if the sale of the home does not cover the balance of your loan. If you are being threatened with foreclosure you may be able to prevent this possible devastation, but you must act quickly.
There are solutions for the sub prime lending crisis that entail making changes to the way lenders are handling this crisis. There are distinct groups of individuals that are causing this foreclosure epidemic. First, there is the homeowner who got a “teaser interest rate” that was affordable at the time but became unfordable when the interest rate adjusted. In addition to the teaser interest rates, lenders started a policy of “no documentation of income” or no-doc loans that did not require borrowers to show proof of their income and are now referred to as “liar’s loans”. The problem was that homeowners couldn’t afford the payment if there were any increases due to taxes, insurance, or an interest rate adjustment.
Financial difficulties are a common problem. People find themselves in situations that are beyond their control that affect their lives and financial stability. Divorce, bankruptcy, job loss, illness, and changing economic conditions are only a few examples of life altering situations that affect our finances.
If you are more than three payments behind in your mortgage payments, your lender or bank has probably already started foreclosure proceedings against you. At this moment, the mortgage lender becomes Public Enemy Number One – their phone calls are avoided, their letters are unopened, and their attempts at communication are avoided at all costs.