Alternatives to Foreclosure

Buying a house is a big investment. It really puts a dent on your financial resources. Of course, the expenses do not end with the down payment. You still have to contend with the monthly payments for the mortgage. This is a financial situation that you will have to live with for years until you have fully paid off your loan.

But what happens if you get behind in your mortgage payments? A delay in payment can have very serious consequences for your mortgage situation. If the delinquency in payments has become too severe then your home could be in danger of foreclosure. A foreclosure means that your property will be repossessed by the lending institution that gave you your mortgage.

Fortunately, even if you have defaulted on your payments, it does not necessarily mean that your property will be foreclosed. There are various alternatives to a foreclosure that you can take. Some of these are:

Paying the delinquency. Generally, all lending institutions are required to accept all the payments that were delinquent and reinstate the loan. The delinquent payments that you have to pay may also include some legal fees especially if you are already in the foreclosure stage. There are also lending institutions that require certified funds in order to reinstate the loan.

Forbearance and Repayment. One of the most common ways of resolving a delinquent mortgage is to work out a plan with your lending institution where in you get to pay a part of your delinquency every month on top of your regular monthly payments. If you are in a situation where you are not able to meet the monthly mortgage payments, your lender can elect to extend the forbearance by suspending payments for a certain period of time up until you can start a repayment schedule.

Payment Assistance. Some state and local governments and also private charitable organizations have instituted programs that help people with delinquencies pay all or part of their mortgage obligation for a certain period of time.

Reamortization. In a reamortization, the delinquent mortgage amount is added to the loan balance as a way of bringing the mortgage payments up to date. This move increases not only the total loan amount but also the monthly payments. Of course, the increase in payment will not be as large if the life of the loan is also extended.

Private sale. A private sale of the property affected by the delinquency can also be done as it will allow you to meet your obligations as well as get any equity that may have accumulated. In private sales it is usual that the amount is greater than the stated amount owed on the loan.

Most of these alternatives presume that you will be able to pay your mortgage payments at some point. But there is also a particular foreclosure alternative called a loss mitigation program. The federal government as well as the mortgage industry established this type of program as a way of stopping foreclosures. Under this program you are given options that will not only assist you in keeping your home even if you do not have the financial capability to pay for the mortgage payments. With these types of programs, it becomes so much easier to address the problem of foreclosures.

Posted by Angie Davis on December 13, 2008 at 12:00 AM

About Angie Davis
Angie Davis is affliated with Century 21 - J. Carol Realtors, which is located in Bixby, OK. For further assistance please use the contact information located on the right.

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Local Information for Bixby, OK

Latitude: 35.960898 -- Longitude: -95.878258

ZIP Codes for Bixby, Oklahoma	74008
Area Code for Bixby, Oklahoma	918
Time zone for Bixby, Oklahoma	CST

Other Area Cities: Bixby, OK Broken Arrow, OK Glenpool, OK Jenks, OK Sapulpa, OK Coweta, OK

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Bixby became a government town site with a post office in 1899. Located in the Muscogee (Creek) Nation, Indian Territory, Bixby was named in honor of Tams Bixby, a chairman of the Dawes Commission. The original 80-acre town site was approved in 1902.Many settlers were attracted to the area by the rich, though sometimes swampy river bottom land. In 1904 the Midland Valley Railroad laid tracks and built a depot in Bixby. It created factions that briefly split Bixby into two towns. The new part of town was deliberately surveyed so that the new streets did not align with the existing ones.As of the censusof 2000, The median income for a household in the city was $50,854, and the median income for a family was $58,104. Males had a median income of $39,941 versus $27,110 for females. The per capita income for the city was $24,336. About 4.3% of families and 5.4% of the population were below the poverty line, including 4.2% of those under age 18 and 14.9% of those age 65 or over. -- Source: Wikipedia.com

Oklahoma 2000 Census Population Profile Map

	Bixby	Oklahoma	United States
Population	13,336	3,450,654	281,421,906
Median age	33.7	35.5	35.3
Median age for Male	32.7	33.9	34
Median age for Female	34.7	36.9	36.5
Households	4,903	1,342,293	105,480,101
Household population	13,261	3,338,279	273,643,273
Average household size	2.7	2.49	2.59
Families	3,819	921,750	71,787,347
Average family size	3.09	3.02	3.14
Housing units	5,287	1,514,400	115,904,641
Occupied units	4,903	1,342,293	105,480,101
Vacant units	384	172,107	10,424,540

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Alternatives to Foreclosure

Local Information for Bixby, OK

Latitude: 35.960898 -- Longitude: -95.878258

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