Foreclosure stop is the process done when a mortgagee does not comply with agreements that are stated in a mortgage or the deed of trust. There are several reasons why a foreclosure stop is done. In most cases, the mortgagor is not able to pay mortgage payments on time due to unexpected unemployment, excessive debt or unexpected expenses. A foreclosure stop is also done when someone commits mortgage fraud. Mortgage fraud is where a mortgagee intentionally does not comply with mortgage payments. There are different ways on how to prevent a foreclosure stop.
Here are some tips on how to not get a foreclosure stop:
- Do not ignore your lender. If you have already received a Notice of Default for your mortgage, the best thing to do is to talk to your lender. Avoiding your lender will only encourage them to take legal action against you. Whether it be a property foreclosure or a loan foreclosure, you must talk to your lender and try to extend your payment. You can also talk about a payment plan that will be more advantageous to you.
- Note modification. If you already know that you are on the verge of mortgage foreclosure, it will help a lot if you consider note modification. Note modification is changing the terms of your loans. This is only for people who have an adjustable loan. You can change the terms of your loan to something that will enable you to pay on time. The lender can also choose to change the interest rate to something that is more ideal for your situation.
- Sell your property. If you are nearing house foreclosure, you can opt to sell your property. By having your property sold, you can address different monetary problems that you are facing. Consider talking with different real estate agents to get different opinions regarding the value of your house.
- Short sale. This is ideal if the value of your house is less than the mortgage payment that you owe. You can do a short sale to prevent house foreclosure. This is the best choice for you if you do not want your property to be foreclosed.
- Ask for help. Do not be afraid to ask for help if you find it hard to meet your mortgage payments on time. In most cases, lenders adjust the payment terms to be able to help you in making payments on time. They may also help you find different solutions to your monetary problems. This will prevent the foreclosure of your property.
These are some of the things that you can do to get a foreclosure stop or to prevent foreclosure. The best way to avoid foreclosure is to pay your mortgage on time. If you do not have the means to do so, you must immediately consult and inform your lender so that it will not get to the point where legal action is filed against you due to your lack of compliance.