Facing Foreclosure? Tips to Help Restructure Debt and Deal with Mortgage Companies
When the foreclosure process starts or is just around the corner, homeowners must decide whether to stay in the home or move. This is not an easy choice to make. Homeowners may want to talk with a lawyer or financial counselor before deciding what to do. After foreclosure papers or letters from a lender arrive, many homeowners give up. They may start ignoring all phone calls and letters about the foreclosure. Homeowners can benefit by being proactive before and during a foreclosure. Knowing all the options will help. Here are some tips to help homeowners who decide to stay in their homes as well as those who decide to move out.
Mortgage Foreclosures and Land Contract Forfeitures
People are usually not able to pay in full when they buy a home. As a result, most Iowans finance homes through either a mortgage or a land contract. If the buyer fails to make payments the loan terms require, each of these financing tools allows the lender to retake the home. The steps involved depend on whether it is a mortgage or land contract. The first part explains how mortgage and land contracts differ. It looks at the foreclosure process a lender must follow to get a home back if the borrower defaults on a mortgage agreement. Part two concerns the steps a lender must follow to forfeit a land contract.
Foreclosure of your home can be very stressful. You may be worried about large debt after foreclosure. There are options available to help you avoid debt and possibly keep your home:
Modification or refinance of your mortgage and loan: You should try to modify or refinance your mortgage payments if you are behind in your mortgage payments and want to avoid foreclosure. When you modify or refinance the loan, you will make a new agreement with your mortgage company. The new agreement will mean you are no longer behind in your payments. It will help you afford your future payments.
Ask an Attorney - What Can I Expect in the Real Estate Foreclosure Process?
There are a few steps that you can anticipate when proper procedures are followed according to Iowa law during a real estate foreclosure process. The steps can include: notice of right to cure default (default notice), acceleration notice, petition of foreclosure, demand for delay of sale and decree of judgement. Consult an attorney at or before the first step in the process. Watch this video to learn more about your rights to protect yourself from immediate foreclosure and the sale of your home.