How to Avoid Foreclosure in your Irvine home

by braddhesi

How to Avoid Foreclosure in your Irvine home

Essentially, there are two directions you can go in when trying to avoid a mortgage foreclosure on your home. You have multiple options along each of these “paths,” but for starters you must choose one of the two directions below:

You will get caught up on your mortgage payments.
You will avoid foreclosure by selling the home.

The goal of both paths is to avoid having your home foreclosed upon by your mortgage lender. That’s what they have in common. But the obvious difference between these two paths is that one is intended to help you keep the home, while the other is intended to help you sell the home (and quickly) to avoid the foreclosure process.

To determine which is the right path for you to avoid home foreclosure you must ask yourself some tough financial questions. Mainly, you must determine if your financial troubles are temporary or more long-term in nature. To understand why this is important we must examine the two paths to foreclosure avoidance mentioned above…

Make an arrageemnt with your lender

This path is for people whose financial problems are only temporary. For example, if you had some unexpected medical expenses that caused you to miss some mortgage payments, but you are now “back on track” financially, you would probably fall into this category.

The thing to remember here is that your mortgage lender wants to avoid home foreclosure as much as you want to avoid it. So most lenders will work with homeowners / borrowers to come up with repayment plans that accounts for missed payments. These are referred to as mortgage workout solutions.

Typically, you have two options to get caught up on your missed mortgage payments. You can pay the amount owed (missed payments) as a lump sum, or you can spread that amount over future mortgage payments. These are the two most common ways to avoid home foreclosure when the homeowner’s financial problems are only temporary.

Try Selling your home

The first path explained above is for people with short-term problems. But what about those cases when the financial troubles are more long-term in nature … cases when the homeowner simply can’t afford the mortgage payments anymore? In this case, we have the second path to foreclosure avoidance. The owner can sell the home to avoid having it foreclosed upon.

This is where the real estate agent who specializes in short sale transactions comes into the picture. A short sale is a type of sale in which the homeowner and the lender agree to sell the home for less than the amount owed to the lender, in order to sell the home quickly in attempt to make the lender whole.

With this technique for avoiding home foreclosure, speed is of the essence. That’s why mortgage lenders often allow homeowners to pursue a short sale in the first place … to sell the home quickly and to get the non-performing loan off their books. This is the closest thing to a “win-win” scenario the lender and homeowner will find when foreclosure is imminent.

Summerize

So to summarize, we talked about two paths to avoid home foreclosure that a homeowner might take. If the financial problems are temporary, the homeowner may work with the mortgage lender to come up with a repayment or reinstatement plan. However, when the homeowner simply cannot afford the home anymore, he or she may attempt to sell the home through a real estate short sale transaction in order to avoid foreclosure on the home (with all the negative financial impact that brings).

Obviously, there is a lot more to learn about these options for avoiding home foreclosure, this is where OC Home Help can help. OC Home Help is a team of Orange County Short Sale and Foreclosure Specialists. They are comprised of a team of real estate agents, short sale specialist, attorneys and title officers. They offer a free and 100% confident consultations. If you have any more questions in regards to OC Home Help log onto www.ochomehlep.com

Thanks in part to www.homeguyinginstitute.com for providing me with the information above. You might want to click on the link above there is plenty of useful information in regards to foreclosures.