Emergency Foreclosure Loans – 5 Tips

Facing foreclosure? You are not alone. In this economy, thousands of households every month are forced into mortgage foreclosure due to not having been able to make their monthly payments for 90 to 100 days.

Not being able to make your mortgage payments is a painful experience. Having a home represents so much for so many people, including: safety & security, pride of ownership, a place to entertain friends and family, and a way to build long-term equity.

If you are facing foreclosure on your home, here are 5 tips that can help:

1. It is important to contact your lender and start a dialogue: As soon as you believe you will miss a mortgage payment, that is the best time to contact your mortgage lender to start a dialogue about your situation. Remember, your lender does not want you to miss payments any more than you do – they want to work with you. And, the more delinquent you are, the more you will owe in missed payments just to bring your loan to current status. Start working with them on a solution now.
2. Your lender may allow you to put off payments for a few months: If you have a good reason for not being able to make your loan payments – such as having lost your job – let your lender know. Be open, communicating with them openly and often.
3. In some cases, they will make a loan modification for you: Some lenders may be open to modifying the terms of your loan in order to allow you to continue to make payments. Do not be shy in negotiating with them to get better loan terms.
4. Declare Chapter 13 bankruptcy: If you are able to make your monthly mortgage payments but are not able to pay the lender the unpaid money you owe from the past few months of not having paid your mortgage, declaring Chapter 13 bankruptcy may buy you more time to bring yourself current.
5. Take out an emergency foreclosure loan: If you believe you will be able to start making your mortgage payments in a few months but just cannot do so right now, consider taking out an emergency foreclosure loan to bridge that payment gap. An emergency loan is an unsecured or “personal” loan that you can take out – regardless of your credit score – and then pay back at a later date. Note that your interest rate will be somewhat high on this type of loan, but it beats being kicked out of your home.

Taking out an emergency foreclosure loan should be your last option. But, if all else has failed, it may be your best option at this point. Be sure to start with a large list of emergency loan lenders so that you can get the best loan deal possible.