There are so many stories that you read about loan modification companies that are getting into trouble because they are promising people that they can contact the mortgage lenders on their behalf, effectively stopping foreclosure. The one thing that I have learned, after my younger brother and a few good friends went about stopping foreclosure on their own, I really wish to share with you so that you may be able to apply a bit of the tricks that they learned about stopping foreclosure to your own situation; should you find yourself facing a foreclosure that is. First and foremost, many times, as my friends taught me, and as some online research has revealed to me, most banks are all about stopping foreclosure, because they generally lose money if your home goes to an auction sale. Take a good buddy of mine for example, who was in a home loan that had an adjustable rate, and when the payment reset he found himself up the creek and unable to afford his loan anymore. He called around to many different loan modification companies but they were all charging some fees he couldn’t afford, and he really is this do it yourself type of person—so he decided to go about stopping foreclosure on his own.
I asked him how he was able to get the bank off his back, effectively stopping foreclosure and getting his loan reset. He told me that he contacted the local Attorney General’s website and read about their rules on homeowners stopping foreclosure. Then he met with one of their counselors that provided him with a handbook that was all about stopping foreclosure. After really doing his research, he told me he called up the bank and explained the situation. They sent him some paperwork to do, and told him that stopping foreclosure was in their interests as well. According to my friend, the entire stopping foreclosure process took about three months. However, in the end, he was actually able to get the bank to entirely rework his home loan and modify the payment so that he could afford to keep it, stopping foreclosure and not having to move or destroy his credit rating. He said that his bank was actually rather willing to work with him, and he made sure to keep up on it and not get down on his luck. After he really pursued the matter, he did go about stopping foreclosure, and he did reset his loan, and he still enjoys living in the wonderful home he bought—now at a monthly payment that he can afford!
