A foreclosure – or foreclosing of a property – is classified as an act of financial indemnity on the part of the lending financial institution – or lender with regard to the initial home loan and/or mortgage; foreclosure can occur in the event that a borrower becomes unable to repay the prearranged financial requirement latent in the terms surrounding the initial loan in question.
The Need to Stop Foreclosure
While there are a multitude of resources that exist in order to stop foreclosure, there are also a multitude of catalysts that lead to foreclosure. The foreclosing of a property is neither situation-specific, nor is the decision to stop foreclosure on the part of the lender a requirement; the following are examples of why foreclosure might take place:
• The borrower experiences financial insolubility
• The borrower undergoes a sudden loss of employment
• The borrower experiences unforeseen expenses either related or unrelated to the property in question
• The borrower experiences a substantial depreciation of assets, monies, and/or finances
How to Stop Foreclosure
Although no definitive guarantee exists, many resources in order to stop foreclosure exist.In the event that an individual chooses to engage in means to stop foreclosure, they are encouraged to explore the following alternatives to foreclosure:
• Mortgage refinancingretains the ability to allow an individual the opportunity to avoid foreclosure upon reworking the terms of an existing mortgage. Subsequent to mortgage refinancing, an individual may discover a newfound eligibility for reducedmortgage payments in exchange for the extension of the life of the mortgage.
• Upon renegotiating the terms of a mortgage – or home loan – is a possibility that may be available in the event that neither the lender nor the borrow wishes to engage in the foreclosure process. Factors that are considered during a foreclosure negotiation period include the modification of rates of payment, APR, points, and applied interest rates.
• An individual borrower may wish to apply for a second mortgage, which upon approval wouldgrant an individual to obtain funding borrowed against a preexisting mortgage loan; however, this typically occurs with the expressed intent of the fulfillment of a preexisting mortgage loan.
• In most cases, additional mortgage loans will only be granted by the lenders who own the preexisting mortgage; this normally results in a desire to ensure full compensation for any outstanding debt on the part of the lender.
Foreclosure as a Last Resort
In the event of an unavoidable foreclosure, the individual should be prepared for any and all financial ramifications resulting from the failure to satisfy outstanding debt. Prior to any decision, an individual is encouraged to consult an attorney specializing in real estate, property, finance, debt, collections, and contracts.
Preventative Measures to Stop Foreclosure
The opportunity to stop foreclosure should never be viewed as a guarantee or an entitlement to the borrower; upon default of payment, the individual borrower should remember that a primary concern of any financial institution is the minimization of the risk of any type of loss.