FreeDIYkits Loan Modification Blog

With the present economic downturn costing many hard working people their jobs the reality that the housing market crisis could be around for a long time is setting in. Job loss can be the preliminary event in a sequence that leads to foreclosure. Although the conventional belief is that the end result of falling behind on your home loan payments is foreclosure and eviction there are some strategies available to the beleaguered homeowner facing the wrath of their lender? Foreclosure prevention is not a myth, it is tried and tested, and it works.

The reality of foreclosure is that most homeowners unwittingly assist the bank in the foreclosure process. The initial reaction when the bank starts calling is to hide and hope that they go away. The bank won’t go away; money is their business and their only concern. There is nothing personal they don’t hate you they just want to exercise the default option in the mortgage, recoup their funds and get on with their business of lending money to credit worthy borrowers.

The trouble with the banks business plan is that today’s credit worthy borrower is tomorrow’s unemployed defaulter. Very few borrowers enter into a mortgage contract with a lending institution with the intention of going into default and eventual foreclosure, eviction and possible homelessness.

The best advice that can be given to a person who finds themselves in the foreclosure is to consciously take control of their situation. If one decides to let events take their course the foreclosure process will most probably be finalized in as little as 180 days from the initial default. 180 days translates into six months which is not a long time for a family whose bread winner is out of work and whose finances are depleted.

The worst thing to do is nothing. Merely submitting an answer to the banks complaint to the foreclosure court will most probably add another 6 months onto the process. This is valuable extra time for a family trying to prepare for fiscally for the future. Foreclosure prevention translates into holding off the lender for a period of time allowing the homeowner to adequately prepare for the future.

It is true that is a small number of cases the banks so mishandle the foreclosure process that they end up paying large damage awards to the homeowner but in most cases the plan is to delay the process for the maximum amount of time possible to allow the homeowner to move on with their lives in a financially stable way.

Delaying the foreclosure process allows a homeowner time to get a new job which might allow them the possibility of qualifying for a loan modification program which would allow them to prevent the foreclosure and stay in their home long term.

The homeowners who are most successful in fighting foreclosure are surprisingly enough the ones who are willing to fight. Access the situation. Access the options and go for it.

Foreclosure prevention is a very real option for a homeowner who is willing to become involved in the events of their life. A 180 day or 6 month foreclosure timeframe can very easily be drawn out to a 24 month or 2 year. The foreclosure prevention plan allows homeowners the time to rearrange their finances which in turn may allow them to refinance through a loan modification program or to move out in their timeframe with finances for a healthy fiscal future.