If you are one of the millions of American homeowners who have been faced with the difficult decision of foreclosure, we hope you realize that you are not alone. Many families and individuals are confronted with the reality that their home could be seized by their lender.
Home Foreclosure Costs
Home foreclosure costs are expensive for both parties involved. The Joint Economic Committee of Congress assess that “the average foreclosure costs $77,935 while preventing a foreclosure runs $3,300” (Daily). There are practical approaches you can take to avoid a foreclosure. A number of companies across the country specialize in debt-consolidation as well as credit-rebuilding.
What You Can Do
Freedom Debt Relief.com focuses on credit-rebuilding. Prosper.com hinges their expertise on personal loans for debt-consolidation. This may help you improve your credit and get you back on the road to financial freedom.
A significant sum of businesses thrive on the promise that “We will definitely work with your lender” to either restructure your mortgage or lower your current interest rate. However, you must be vigilant and do your research before dealing with one of these particular organizations. There are a lot of so called “chop shops” or “boiler rooms” which aim to take advantage of a person’s bad situation in order to make a profit.
Another thought may include getting help from the government. The Obama Administration “offers banks incentives to modify mortgages” (Propublica). However, there are certain criteria that you must meet to earn governmental backing. If you are one of the unfortunate people facing foreclosure, you may qualify and be eligible for a modification. Many Americans may not know, but a loan modification is a change of the terms within your loan contract. Countless lenders refuse to change the fine print within their loan contracts but some are willing to work with their customers.
Many legal firms practice home foreclosure and similar types of law. However, home foreclosure costs remain high. A foreclosure or bankruptcy attorney might be able to work with your lender too. If these are two means you are taking into account, you could contact a few lawyers in your area and take advantage of their free consultations before opening your wallet.
Find Legal Advice
Depending on the foreclosure rules and regulations within your state, you may want to verify that bankruptcy is a worthwhile alternative. If you have questions and need immediate assistance, visit TalkLocal to find a lawyer who specializes in bankruptcy law. We will connect you with up to three lawyers in your area, within minutes.
