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Facing a Foreclosure
October 29, 2011 by Mortgage Align · Leave a Comment
In recent times, a lot of people have faced foreclosure notices. Receiving a foreclosure notice will naturally cause someone to upset and it becomes difficult to think rationally and make decisions regarding how to proceed in the matter. But, even though thousands of people have received foreclosure notices, a lot of them have avoided foreclosure by taking proper steps and legal guidance. Here are a few things that are very important if you want to avoid foreclosure.
Meet the lender
When you get a foreclosure notice, it is of the utmost importance that you meet the lender as soon as possible and tell him the reasons behind why you were unable to pay the dues in time. If you have any evidence that supports your claim you should take those along with you. Most of the lenders are aware about the hardships faced by people and they too want to reduce the number of foreclosures. As, more foreclosures will end up having a negative impact on their credibility in the market. Most lenders have different programs to help people in these situations. If you are able to provide good enough reason for non payment of dues, then you might be offered a debt modification, or a debt forbearance plan which can help you avoid foreclosure.
Consulting counselors
If meeting the lender is unable to resolve your issues, or the programs are unable to help you, then you should look for a foreclosure counselor. HASP (Homeowner Affordability and Stability plan) and EHLP (The Emergency Home loaners Loan Program) are two programs funded by the Federal government. These programs can help you when facing foreclosure, but the terms and conditions of the programs are quite complex and it is best to use a counselor that has been appointed by the Federal housing Agency. These counselors will give you the help and advice you need to avoid debt traps and to avoid a foreclosure. You can contact these counselors through the Federal Housing Agency website and you can fix the appointment online as well. If you are unable to find these counselors there are a lot of other organizations that provide such advice without charging any fee.
Billions of dollars have been allotted by the government through EHLP to help people facing housing problems. In states where such a program does not exist, there are similar programs. It is always better to look for counselors who can give you the best possible solutions in these situations.
