Dealing With Your Lender the Right Way to Stop Foreclosure

If you are wondering that why your lender or the mortgage bank would compromise and help you to stop foreclosure you are right. But, let us tell you that some lenders have compassionate personality and are interested in helping the homeowners provided that the homeowners deal with them the right way. Also, as the foreclosures in Houston cost a significant amount of money to the lenders, they are happy to help the homeowners to stop foreclosure in Houston.

There are a number of things by which your lender may help you dealing with the situation and stopping foreclosure. A workout is a term that is used for this process. Actually, it is a compromise between the homeowner and the lender that is made to make the mortgage affordable for the borrower. You can go for this workout if you are on default or expect to be a default soon. Keep in mind that lenders are always receptive to all kinds of workout arrangements that can help you get back on track. Here are the things your lender can do for you.

• He may modify the terms of the mortgage temporarily or permanently to make it affordable for you.
• He may grant you a temporary forbearance, according to which you will be freed from making payments for up to six months.
• He may add a part of the back mortgage payments owed by you to the total balance so that it can be adjusted with the remaining payments of the loans and can be paid over the entire mortgage time.
• He may modify the interest rate or the length of the loan to reduce the amount of monthly payment so that you can manage to pay it at a time.
• He can waive the penalties or the legal fees that you would have incurred.
• He may allow you to sell your house for less than you owe on the mortgage and forgive you the rest of the mortgage balance.
• You lender may agree to take a deed in lieu of the foreclosure, according to which you can voluntarily give your property to your lender, skipping the long procedure of foreclosure.
• He may postpone some payments to the end of the loan and thereby, extend the loan term. This is a good opportunity if you know that your financial condition will improve soon.

Thus, as your lender can help you in a number of ways to stop foreclosure in Houston, it is essential to deal with him the right way to get him on your side. Here is how you can make your efforts work.

• Explain your hardship

You can explain your financial hardship to your lender and make him know that how it is/was temporary. Giving him the proof of your financial status and that you were regular on your mortgage payments before the financial crisis, you can convince him for the loan modification.

• Give them a proof that you would be regular on payments

Showing him that the financial problems you were facing have ended, you can give him a proof that you would be regular on your payments as you were prior to it.

• Request him and show faith

If you want your lender to be on your side, request him for the solution that you want to proceed with. Make him understand your situation and show your faith that you really have hopes from him.

“ No matter how hard the situation is, you can persuade your lender to help you with the foreclosure. Even it would not be wrong to consult him for the possible solutions that you can work on to deal with the foreclosure. His response would also let you know whether he is ready to help you or not.”