Foreclosure or Modification?
                           

Foreclosure is such a devastating experience.  Many people end up being sick, end up with a heart attack, diagnosed with cancer, and much, much, stress.  No one wants to lose their home.  I have good news for most of you.  There are ways to save that from happening.  Let me explain.

Foreclosures occur because of not being able to make the mortgage payment.  The payment was not affordable.  People have lost their jobs and have reduced the income in their household.  If both husband and wife are working and one loses their job the income is so drastically cut that you probably are not going to be able to afford the house payment.  Now if you are someone that uses credit cards constantly then you need to quit spending money.  Your choice will be to make the mortgage payment or spend money.  That may not be your case.  You may be the type of person that is very frugal in not spending money but have put money in savings.  If that is you then their may be hope for you.  However, if you are in an arm mortgage and your payment has increased and that is why you can’t afford the new payment, notice I said can’t afford, then you need help immediately.  You may be a victim of predatory or discriminatory lending. 

First you need to contact your lender and let them know that you cannot afford to make the new payment.  Ask them if they have any modifications that they are offering.  As long as you can make a payment your home will not go into foreclosure.  After 90 days of no payments then your loan is turned over to the collection lawyers. 

This will be one of the most degrading, cold, intimidating, and stressful time of your life.  You are about to lose your home.  The bank should cooperate with you and work to lower your payment.  That is not the case.  So now what do you do.  If you do nothing this is what will happen.  The phone calls will come everyday, sometimes twice a day to ask you “why have you not made a payment?”  After 90 days the paperwork will come that says your home is being foreclosed on.  Then the realtors will come and ask you if they can short sell it for you.  Beware of this!!  There are a lot of parameters that need to be met before you can do a short sale.  With so many foreclosures now days you could possibly live in your home for another 30 to 120 days, but then comes the eviction notice.  Once that paper comes you may not have anymore than 3 to 30 days to get out. 

                  Go to www. NACA.com for free help!!
 

Now the neighbors are mad at you and the value of their home will probably decrease because of your foreclosure.  Homes that stand empty can be vandalized, windows are broken, front yard gathers trash, weeds grow up and the neighborhood is no longer a nice area to live.  If and when the bank finally puts the house to be sold over an auction the value may be decreased substantially.  You will have so many days to redeem your home but that rarely happens.  Most homes are sold for what is owed on them or even less. 

Let me tell you that if this is happening to you today there is hope for you.  I don’t care if you have lost your job, taken bankruptcy, have collections or even a tax lien, there are companies out there that can help you.  This company is fighting to make your neighborhood stabilize and quit the foreclosures.  Don’t give up.  This is your home and you need to fight for yourself.  Don’t let apathy set in and walk away.  Apathy is the most deadly cancer of democracy—each of us must accept our responsibility for improving society and fight for your rights. 

Make your mortgage payment affordable.  Restructure your mortgage to an affordable payment.  If the bank says no then you can go to http://www.naca.com and register with them.  You will need to go to their workshop to see what they actually do.  This is totally free to you.  That’s right I said free.  Not one penny will be spent from your pocket.  They will modify your loan so that you can afford the payment.  NACA stands for Neighborhood Assistance Corporation of America.  They are in most states and will work with you to help you stay in your home.  They are a very aggressive company and will go to the banks and fight for you.  NACA is the most effective organization in restructuring mortgages.  Best of luck to you.  Thousands have flocked to them for a chance of loan relief. (Washington Post 7/24/96)

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