Mortgage - Home Mortgage

Mortgage Rate
Home Mortgage Foreclosure

The worst thing that can happen to a home owner is foreclosure. Foreclosure is the process by which the holder of a mortgage takes possession of the home and evicts the homeowner.

Foreclosure usually occurs because the homeowner is unable to pay their mortgage payments. In times of economic downturn many people lose their homes to foreclosure.

Fortunately, foreclosure can often be avoided by careful planning and preparation. Those who face the prospect of foreclosure can devise strategies to avoid it and keep their home. Those who refuse to acknowledge the possibility of foreclosure will probably lose their homes.

How to Avoid Foreclosure

The best way to avoid foreclosure is to work with the holder of your mortgage. Foreclosure is a very expensive process and the companies that hold mortgages usually lose money from it. This means that mortgage holders have a real incentive to work with homeowners and help them avoid foreclosure.

If you think you aren’t going to be able to make your mortgage payments you should contact your mortgage holder and tell them about it. Most of the companies that hold mortgages will be willing to work with you if you are honest and tell them the situation.

The mortgage holder might defer payments, reduce payments or change your payment schedule to help you avoid foreclosure. They might also be willing to refinance your mortgage or at least change the terms.

Remember it never hurts to talk to your mortgage holder and see what you can negotiate. A few phone calls could save your home from foreclosure.

Programs to Avoid Foreclosure

There are government programs that can help some homeowners avoid foreclosure. To learn about these programs you should contact the Federal Housing Administration or your local housing agency. Mortgage brokers and realtors may know about some of these programs as well.

Think Long Term to Avoid Foreclosure

Every homeowner should think about the possibility of foreclosure and think about how to avoid it. Homeowners who take action ahead of time can avoid foreclosure.

The best way to avoid foreclosure is to get your mortgage payments as low as possible. If you have a mortgage with a high interest rate or an Adjustable Rate Mortgage you should try to refinance it now. A new mortgage with a lower fixed interest rate can help you avoid foreclosure.

Another method of avoiding foreclosure in the future is to pay as much of your mortgage off as possible. If you get some extra money instead of saving it use it to pay off all or part of your mortgage.

Mortgage holders will be more likely to work with homeowners who have paid off a large percentage of their principal. They will be more likely to refinance a mortgage for a person who has a record of paying it off.

If you can try and pay off the entire mortgage because there is no way anyone can foreclose on home with no mortgage.