What Are Foreclosure Avoidance Approaches?

Only recently has there been a change in the conventional process that a lender would take to enable a homeowner who had been fighting with their mortgage payment.

You can navigate to http://www.resilientpma.com/foreclosuredefense.html for more info on foreclosure.

Image result for Foreclosure Avoidance

Traditionally before a creditor would only provide any help to a debtor when their mortgage loan went into default, nonpayment of their monthly loan repayment for three or more consecutive months.

Under a normal situation like this borrowers could possibly be qualified for Traditional Loss Mitigation methods if they were lucky. To clear up some language, let’s define loss mitigation as the process of working towards quitting or decreasing any losses to the lender and borrower, in effect damage control.

Under conventional foreclosure prevention guidelines to obtain any help from a lender, a borrower would need to meet some requirements. Among the main requirements is one where nontraditional methods provide some extra flexibility for homeowners in distress.

Under nontraditional procedures, a homeowner does not need to have their loan go into default for nonpayment before they could get any help. In the previous lenders would inform homeowners that they could not provide any help before their loan was actually in default.

Another substantial distinction is the true hardship that led to a homeowner to fall behind.  Under the standard method, the debtor would have to either return to work or have adequate household income for aid. Under nontraditional procedures of foreclosure, avoidance borrowers may be given a temporary grace period in the event that they’re not back to full employment.