Ten Ways to Stop Foreclosure and Protect Your Foreclosure Rights

The fear of losing your home is a big deal and an emotion shared by millions of other homeowners so you’re not alone. However don’t let fear control what may be the most important financial decision of your life so try to relax and take the time to learn everything you can about the Foreclosure Process and understanding that you have Ten Different Ways to avoid foreclosure sales.  Once you know that there’s hope for a good outcome you take the fear and emotion out of the picture and make decisions that are best for you and your family.

Learn How to Use SavetheCave.com to Stop Foreclosures.

This post will briefly discuss ten ways to stop foreclosure and methods to stop foreclosure sales. You can also find more in-depth coverage and Sample Foreclosure Documents for each of the Foreclosure Options discussed here by visiting our Foreclosure Options section.

The most frequently discussed foreclosure option is a Short Sale which involves selling your home for less than the amount of your loan after getting bank approval for the sale.  If you try for a short sale to avoid foreclosure it’s also important to know how to avoid Deficiency Judgments and what to include with your request for short sale approval.

Short Sale Cover Letter

Short Sale Financial Hardship Letter

The second foreclosure option is a Loan Modification from the original lender or re-financing from a new lender to lower your overall monthly payments. This option is the primary feature of the recent Nationwide Foreclosure Settlement discussed in a related blog and will be the focus of more advertising and financing options in the next several months because of the agreement.  Results can vary greatly with different lenders so be sure to put together the right information needed to convince the bank that your request is real and that a loan modification is essential to help you avoid foreclosure rather than an easy way to save money you already have.

Loan Modification Cover Letter

Loan Modification Financial Hardship Letter

The third most popular alternative is a Deed in Lieu of Foreclosure which is the quickest and easiest way to stop foreclosure sales and avoid foreclosure lawsuits.  The process simply involves transferring your property to the bank with a document similar to a quitclaim deed but it may not release you from a possible deficiency judgment or income tax consequences so be sure you understand the possible consequences before moving ahead.

Deed in Lieu of Foreclosure Cover Letter

Deed in Lieu of Foreclosure Financial Hardship Letter

A fourth way to stop foreclosure is closely related to the Deed in Lieu of Foreclosure and is called Deed-For-Lease and is becoming more common with Fannie Mae and other lenders.  What this involves is executing a Deed in Lieu of Foreclosure together with a Deed-For-Lease which lets you rent your home from the bank and stay in your current property.  This is a new and exciting foreclosure option that we’ll cover in more detail in future posts but you can get more information now by visiting KnowYourOptions.com which is a site sponsored by Fannie Mae.

The fifth way to stop foreclosure is renting out your home for 2-3 years while temporarily moving to a cheaper location to reduce your expenses and get back on your feet financially.  You can also rent out rooms or any portion of your home but either way the obvious advantage is the ability to save your home and avoid foreclosure completely. Read More on Foreclosure Rentals to Stop Foreclosure.

The sixth foreclosure option is Defending Your Own Foreclosure Lawsuit or hiring a lawyer to help you.  As a result of the numerous  mistakes and fraudulent documents used by banks and loan servicers to support their lawsuits, there are a number of very strong defenses available to help fight foreclosure cases.  Although we recommend hiring a lawyer to handle your case or at least consulting with one for an hour or two to help understand local laws and procedures, you can defend your own foreclosure lawsuit.

Foreclosure Defenses

Sample Foreclosure Answer

Foreclosure Lawsuits

The seventh foreclosure option is filing for bankruptcy protection which results in an automatic stay of all foreclosure actions.  Although its the single most effective way to stop foreclosures and avoid foreclosure sales at the last minute, the stay is temporary and is not a long term solution.  If you feel that bankruptcy may be the best option for you, meet with an experienced bankruptcy attorney in your area and make sure that your first meeting or consultation is free.  Read More About Foreclosure Bankruptcy

The eighth foreclosure option is called “Forbearance”  in which lenders agree to temporarily suspend or reduce monthly payments for a specific period of time if you’re in a situation where the short time off will help resolve your financial crisis.  There are many programs available for veterans and other homeowners with additional information at Fannie Mae’s KnowYourOptions.com and directly from participating lenders.  Forbearance to Stop Foreclosure

Strategic Default is the ninth foreclosure alternative and actually a combination of one or more of the earlier foreclosure options we’ve covered.   Essentially, Strategic Default is the decision to stop making mortgage payments that you can otherwise afford to pay with the goal of reducing the principal balance of the loan, the interest rate or both to more accurately reflect the value of your home in today’s depressed housing market.  With home values down 50% or more in many places it can be a very effective way to improve a dramatically under performing asset and is nothing more than a business decision with no moral implications or obligations whatsoever.  Blame the Banks for the Foreclosure Crisis.

Strategic Default to Stop Foreclosure

Sample Foreclosure Letters

The last option to avoid foreclosure is to Walk Away which for reasons covered in our foreclosure options section has the highest risk of a negative outcome with the least to gain as a result of doing it.  It’s listed last for a reason and don’t even think about doing it until you understand more about the foreclosure process and how much time and how many different options you have.

Related Content:

Read more about the Foreclosure Process 

Nationwide Foreclosure Settlement

Dangers of Foreclosure Stress

Photo by Simon Howden

 

Florida Foreclosure Crisis

Love the weather but hate the housing market – a familiar refrain for many Floridians as the Florida Foreclosure Crisis has dominated the lives of  homeowners for the past several years.

Florida leads the nation in just about every negative foreclosure category and currently has more than 350,000 active foreclosure cases swamping the courts with a lot more to follow.  Unfortunately the number of foreclosure lawsuits is likely to double and the Florida Foreclosure Crisis worsen by 2014 due to 500,000 seriously delinquent mortgages that are not yet in foreclosure proceedings. Defending Florida Foreclosure Lawsuits.   Incredibly the current number of Florida loans in some stage of the foreclosure process – about 460,000 loans – is more than the total number of mortgages in 22 other states!  Florida Foreclosure Process

Finally, at least one in every four Florida home sale involves a property in foreclosure which means dramatically lower home values exceeding 50% in many counties with no signs of stabilizing anytime soon.  In fact well known housing analyst Jack McCabe, one of the few to predict the housing bust years before it happened, warns that it may take a decade or more for home prices to return to previous highs.

Broward County Foreclosure Help

Palm Beach County Foreclosure Help

Despite the negative outlook overall there’s a few reasons for short term optimism.  One positive sign is that many lenders are increasingly dealing with defaults through Short Sales rather than foreclosure lawsuits in a trend that will hopefully expand.  Recently major lenders Wells Fargo and Chase have actually been offering homeowners thousands of dollars to encourage short sales as banks are finally figuring out that its in their best interests to stabilize the housing market and work with rather than against homeowners to do so.

A second positive development that may help Florida homeowners is an influx of roughly $8 billion dollars in cash for Loan Modifications and other benefits from the Nationwide Foreclosure Settlement.  Although $8 billion dollars barely puts a dent in the $110 billion dollars in underwater Florida mortgages, something is better than nothing and will ultimately lead to more deals with banks and a few less foreclosures.  Is Your Mortgage Underwater?

The combination of funding from the multi-state Settlement and the increased willingness of lenders to push short sales over foreclosures are good signs but won’t fix the long term problem with largely unregulated predatory banks continuing to exploit the financial system.  Blame the Banks – Foreclosure is Not Your Fault

You can read more about the Foreclosure Settlement and why it won’t help in our recent blog and as a result its more important than ever to learn about the Foreclosure Process to take advantage of favorable conditions when and if they happen to give your foreclosure plans the best chance to work for.

Ten Foreclosure Options to Beat the Bank

You can use our Sample Foreclosure Documents to assist in getting your Florida short sale or loan modification approved and we’ve also included Sample Florida Legal Documents to help you defend your own foreclosure lawsuit.  Tips to Get Your Short Sale Approved

Related Content:

Difference Between the Promissory Note and Mortgage

Defending Foreclosure Lawsuits

Don’t Just Walk Away, Deed Away

Stop Foreclosure Stress and Enjoy Life

Photo provided by freedigitalphotos.net

 

Use SavetheCave.com To Stop Foreclosures

How to use SavetheCave.com to stop foreclosures starts with learning everything you can about the Foreclosure Process.  Once you know what’s actually going on it’s much easier to pick a foreclosure option that works best for you and your family.  Detailed Information on Foreclosure Options

At SavetheCave.com we understand the power of knowledge and as a result have provided extensive materials on a wide range of foreclosure topics to help you survive the foreclosure process.  You’ll learn everything from what to expect and when to tips for living with foreclosure stress and understanding the risks to your physical health and mental well being. The Dangers of Foreclosure Stress

Using the navigation bar at the top of our site you can select a general topic and any of the sub-topics that interest you from the drop-down menu which directs you to a detailed discussion of that topic as well as related links and materials.

Once you’re comfortable with the foreclosure process the next step is deciding which foreclosure option works best for you and then learning how to actually do it.  SavetheCave.com is here to help with this critical stage as well and provides all the information and tools you’ll need to to learn about the Ten Ways to Stop Foreclosure in addition to Unlimited Free Access to all of our Sample Foreclosure Documents and Legal Forms.

  Sample Foreclosure Documents

Our Sample Foreclosure Documents include cover letters to the bank, examples of what to include in your financial hardship letter and sample legal forms to help you get started if you decide to defend your own foreclosure lawsuit. They’re all part of our free membership and commitment to provide you with everything needed to stop foreclosure if at all possible.  Unlike other foreclosure sites there are no costly subscription fees so you can return as often as you like.

Because life goes on during and after foreclosure as well as the importance of maintaining a positive outlook in life, we’ve dedicated a significant portion of our site to topics related to the Dangers of Foreclosure Stress and will continue to provide valuable medical and lifestyle updates to Prevent Foreclosure Stress From Controlling Your Life.

Finally, with our weekly interactive blog we’ll keep you updated on the latest foreclosure trends and news, important legal developments and more ways to Save Your Cave and protect you from foreclosure.  Feel free to comment on any of our posts and share your story with our readers as well as your own tips for surviving the foreclosure crisis.

If you like what you read, tell your friends and relatives about us and let us know what we can do better. Even if you don’t like something, let us know your thoughts and what we can do to improve our site.

Related Content:

Florida Ground Zero in Foreclosure Crisis

Florida Foreclosure Process

Nationwide Foreclosure Settlement

image provided by freedigitalphotos.net

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