avoid foreclosure

After a steady climb, home prices are now starting to come down nationwide, while the foreclosure rate is rising. According to RealtyTrac.com, a real estate Web site that tracks realty trends, more than a million foreclosures are expected to be recorded this year. Foreclosures in the United States were up 47 percent from March 2006 to March 2007 and one foreclosure was filed for every 92 households last year.

If you are one of the many homeowners nationwide who are having trouble making mortgage payments, below are a few tips to keep in mind as you fend off foreclosure.

Level with Your Lender
Your lender wants to avoid foreclosure just as much as you do! If you foreclose they lose money too. Often times a foreclosed home sells for less than the amount left on the mortgage, thus depriving you and your lender from any proceeds. Level with your lender; let them know your financial situation so that they can work with you to come up with a realistic alternative solution.

Consider Refinancing
The best solution to help avoid potential foreclosure is to refinance. Some homeowners are finding that they can actually switch to a fixed-rate loan for nearly the same interest rate as their adjustable. A fixed rate loan offers the same interest rate for the life of the loan so homeowners do not have to worry about rising rates.

Re-adjust Your Adjustable Rate Mortgage
Work out a modified payment plan with your mortgage broker. Agreeing to pay for delinquent payments over the course of your loan, or postponing a few payments until you have the funds, may help you avoid foreclosure.

Sell Your Property
If foreclosure is imminent and refinancing or modifying your loan is not an option, sell your home. It is better to prevent foreclosure and make a profit than it is to have your lender repossess the property. Though you may not get the full market price for your property, homeowners who sell have the benefit of not having to put a foreclosure on their credit report.

We're here to help
The sooner you fight foreclosure, the better. Contact Lakewood Capital Inc. today to learn more about avoiding foreclosure and your refinancing options.

Lakewood Capital Inc. is dedicated to keeping you up to date on the latest housing market news and making sure you receive the best mortgage options and rates. Call 888-516-7555 today to obtain custom loan options that will fit your current financial situation and help you obtain your ownership goals.