How to Prevent a Foreclosure of a Home Loan

Let's face it, when you're up to your neck in bills, you'll soon find yourself with the difficulty of paying your loans, mortgage loans, second mortgage loans, or any secured or unsecured credit, on time. Even if it's down to the last stretch of your real estate's foreclosure process, there may still be a way to keep your home and set up arrangements of mortgage obligations in arrears.

Step 1: Contact your mortgage company and attempt to modify your existing loans and set up a workout plan to pay those "in arrears" obligations. If you have been sent a breach letter (usually after three months of delinquent payments), now is the time to really consider your options. You can either make the delinquent payments and write a letter of reason; and submit a copy to your mortgage's loan modification department, main customer service department, and the corporate headquarters, while including all of these recipients as "cc:" in your letter. Or, assume the last resort option to Prevent Foreclosure.

Step 2: If you've done this process, and you still you haven't had any luck with any negotiations (i.e. payments to push the foreclosure date until you've settled your finances) with your mortgage company or their representing attorney, and a foreclosure date has already been defined, there is not one other solution but to file for a Chapter 13 Bankruptcy. (Ask any attorney, they'll detail a similar response)

Step 3: Chapter 13 Bankruptcy attempts to consolidate your rearage of the mortgage, in addition to any unsecured or secured credit, to be paid within a typical time frame of 3 to 5 years (dependent on the situation, laws, State, etc.). Simply meaning, its an approved debt consolidation plan that titles itself as a bankruptcy petition/filing that seeks to decrease your monthly payments. However, before you can petition for Bankruptcy, you'll have to take one credit counseling course in order to receive a certificate of credit counseling.

Step 4: Credit counseling classes can be taken online; and usually last...

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How to Prevent a Foreclosure of a Home Loan eHow.com

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