Stop home foreclosure refers to the modus operandi resorted to by a borrower in default to salvage his home, which otherwise would have been forfeited to the lender on account of foreclosure. The borrower is taken aback by the notice from the bank that provided financing to the borrower on the basis of a mortgage deed for purchase of the home. By force of circumstances beyond one's control, the borrower fails to make payments. The borrower would be informed of the default by the lender immediately after the breach of trust noticed by it. If the borrower does not pay proper heed to the notice, which will be repeated by different ways of contact established by the lender, foreclosure proceedings would ensue. This could be shocking for the borrower who was residing in the home for years, with sentimental attachments. It should be his/ her priority to seek the guidance of a professional rendering assistance to ward off foreclosure. With such help, the lender could be approached with honest presentation of the facts and circumstances that led to the delinquency. It could also be proved that the borrower is prepared to make amends, provided the mortgage is reorganized to mutual satisfaction by way of modification of the mortgage. The original mortgage should be redrawn and replaced by the modified version, under which the borrower would get a reprieve. Refinancing would be provided while recasting the original deed, which takes care of the financial needs of the homeowner. Interest rates would be lowered by extending the term of the mortgage deed, provided the borrower holds better equity. The lender should be convinced of the past history of performance of the borrower, with highlights of clean financial dealings. By proper presentation of the default as arising from circumstances like illness, accident, divorce, unemployment, etc. and a rosy future awaiting him/her with the plans under vetting, the lender could mitigate the borrower with a new deed of mortgage. The borrower thus retains his home and his reputation. |
