Fighting With a Foreclosure and Avoid It

I worked for the government for a number of years in the early part of the 2000's before the most recent economic recession. I was on urban and home development committees and saw firsthand some of the devastating effects caused by the housing crisis towards the end of the last decade. Both lenders and home owners were losing their livelihoods because it was very difficult to renegotiate new contracts from ones that had been signed years ago. Let me rephrase... there was little incentive for lenders to renegotiate. In big business, with large amounts of money being spent, a deal is meant to be honored, not just tossed aside for something new whenever the going gets tough. However, shortly before I retired the whole landscape of foreclosures changed. The government recognized that this situation was causing problems for many economic sectors and decided to step in and encourage further negotiations in an attempt to stop foreclosure. The program they designed in the spring of 2009 was called HAMP, or the Home Affordable Modification Program.

This new platform for negotiating encourages the lender to work out a new deal with struggling homeowners. It's really designed for people who have come upon incredible financial hardship and have no foreseeable way of honoring the original contract. If you've given up a lot of your former luxuries and are simply feeding and clothing yourself these days the government doesn't want a lender to be able to throw you out on the street. They would like to at least give you the opportunity to fight for your home by restructuring an existing mortgage. You have to prove that you are eligible first though. You also have to prove you can afford the new negotiated loan.

Be Prepared with

§ Your Monthly mortgage statement and any other mortgages on your home.

§ Your most recent pay stubs for any members of the household contributing toward the mortgage payment

§ Information on your last two years of tax returns

§ Any documented income you receive from other sources

§ Two most recent bank statements

§ The utility bill for the residence

§ Credit Card account balances and minimum monthly payments statement

§ Any information on your savings and assets

It's important when pursuing home mortgage loan modifications to be organized and well documented. The home loanmodification program is for people who really have no way of avoiding foreclosure unless the mortgage is changed. Therefore you need to prove yourself worthy and write a letter of hardship detailing all the reasons why. The federal hamp program could help save your home. The best website to get help and professional advice on how to avoid foreclosures is credit-yogi.com. They can work with you to see if you are eligible for a hamp modification program before you even attempt to look for one.