Home foreclosure is on the increase in both the United States and in many other countries across the world as the credit crunch hits with full force. Homeowners are struggling to make their mortgage repayments and are falling into arrears like never before.

Some estimates state that home foreclosures have reached over 30%. In other words, nearly a third of all homeowners are facing problems and the possible repossession of their home. That is an almost unbelievable figure and one that would have been unheard of just a couple of years ago. CNN told viewers: “Foreclosures spiked 112% in early 2008 – with no real end in sight.”

As the credit crunch bites deeper worldwide, many homeowners will be wondering what, if anything, can be done to prevent a home foreclosure.

Virtually no one can handle such an upsetting situation and will sit back and just let it happen, feeling that there is little they can do.

Are you or someone you know facing this situation? There really are some things you can do, actions that you can take to delay the repossession of your home or even put a stop to it altogether.

In such a situation it is essential to act swiftly: Don’t just sit and worry – there are things to set in place that would at the very least buy you some time. When you receive a notice of default, you have just ninety days to respond. If you do not act swiftly, saving your home may be much more difficult, if not altogether impossible.

Remember, you really cannot afford to lose any time at all – if you want to save your home from going into foreclosure, you have to act right away. No matter how painful it is, it really is in your best interest

To avoid running out of alternatives, you need to arrange some solutions. It is sensible to talk to your lender at an early stage, but what you say to them (and what not!) is of crucial importance!

It is very important to know in which order to enact solutions to your predicament. Going the wrong way may cause the best and least expensive solution to elude you . . .

By doing careful research you will find that home foreclosure may not be the only option.

There are many reasons why homes go into foreclosure. Dealing with foreclosure is going to be difficult no matter what the cause. So if you’re facing a foreclosure it’s crucial that you understand as much as possible about the process and what your options are.

What causes foreclosure?

When homeowners stop making mortgage payments or are late with their payments, the mortgage holder can begin the foreclosure process according to the terms of the mortgage agreement. It’s wise to at least make yourself aware of the number of payments that is stipulated in your agreement so you can do everything possible to avoid reaching this “magic” number.

How long can a homeowner stay in their home when it goes into foreclosure?

The law varies from state to state, so there is no set rule. In some states, homeowners can remain in the home for about a year. But in other states, the time frame may be as short as a few months. And in reality, there are some homeowners who don’t move out even when their home has gone into foreclosure. In that case, they may decide to wait for an eviction notice before leaving.

What is a redemption law and what is meant by a period of redemption?

If a home has been foreclosed upon, most states allow a period of time where the owner can pay back all overdue mortgage payments. This is referred to as a redemption law. Even if a home has been sold at auction, if the owner can come up with all monies owed, the redemption law allows a homeowner to reclaim their property within a specified period of time.

What is a short sale and how does it work?

In a short sale, the proceeds from the sale are less than the amount owed on the mortgage. The lender has to agree to accept less than is owed. In some circumstances, the seller may still have to pay the difference between the short sale proceeds and the amount owed. The advantage to a seller in a short sale is that there will be no record of a foreclosure on their credit history. Of course the disadvantage is that you have to come up with more money from another source.

What is meant by deed-in-lieu of foreclosure?

In this case the homeowner agrees to give the lender the deed to the house. In return the lender forgives the mortgage and cancels the foreclosure proceeding. You should be aware that this type of agreement will affect your credit to pretty much the same extent as a regular foreclosure.

Being informed can help a lot when you are dealing with foreclosure, so you are able to figure out your best options.

If you are facing foreclosure, you need help. Get free foreclosure information at http://getforeclosurefacts.com and find out how to stop a foreclosure

When you are about to lose your home, you don’t care about anything else. It consumes your every thought. The only way you will be able to relax is to get the foreclosure called off so you can go back to enjoying your home and your life. Well, as a last ditch effort there is a method available to stop foreclosure on your home.

[I:http://talk-about-bankruptcy.com/wp-content/uploads/2010/07/GingerTaylor8.jpg]Filing for bankruptcy is bad for your credit, but sometimes it can save a home from foreclosure. Under chapter thirteen of the US bankruptcy code, debtors are allowed to submit a plan for repaying their debts. The foreclosure process is halted as soon as you file for chapter thirteen. However, your repayment plan is subject to review by creditors and must be approved by the bankruptcy court.

Before you file for bankruptcy, you will be required to attend a credit counseling session. This can help you determine whether you really need to file for bankruptcy or if your debts can be repaid in some other way. If the credit counseling agency prepares a debt repayment plan for you, it must be submitted to the court along with your bankruptcy filing.

Within fourteen days after you file for chapter thirteen, you must file your repayment plan. This is usually done at the same time as the original filing, but it can be done later if you are not quite ready yet, as long as it is on file with the court within fourteen days.

You will be required to attend a creditor’s meeting, and all of the companies and people you owe money will have a chance to ask you questions. The purpose of this meeting is to give your creditors a chance to object if they do not feel you will be paying as much as you possibly could under the proposed plan.

After the creditor’s meeting has been completed, your repayment plan will be reviewed by the court to make sure that it meets the requirements set forth in the bankruptcy code. It can take up to 45 days for approval, but you have to start making payments according to the terms of the agreement within 30 days.

The downside to using bankruptcy to avoid foreclosure is that sometimes it only postpones it, and then you end up with both a foreclosure and a bankruptcy on your credit. It is often difficult to stick to the repayment plan, and if you fail, you can still lose your home. But before you file chapter thirteen bankruptcy explore all possible options, talk to an experienced loan modification attorney first.

Call janian and associates for a free consultation with a loan modification attorney.

The U.S economy is in the midst of a recession which is increasing the number of jobless claims and homeless rates.

As a result people are falling behind on their mortgage payments which can result in home foreclosure. Families who are not able to pay their debts are on the brink of losing their homes. To overcome this problem, President Barack Obama has developed with  loan modification program.

The focus of loan modification is to lower the homeowner’s mortgage payment. With this in mind, the Obama’s administration has designed a loan modification plan, which allows homeowners the opportunity to reduce or eliminate  excessive charges that are being tacked on to their mortgages.

How it works?

1. Reduce the interest rate:

The loans that will undergo modification will be at a significantly reduced interest rate. The modified interest rates can fall between 1-6% depending on the customers hardship and their ability to prove financial difficulty as a result of their mortgage.

3. Reduction of principal balance:

The Obama plan implies that the principal reduction amount will not inflate the interest charges. If the option of principal reduction is used, the remaining capitalized balance will be carried forward until the loan that is modified matures and the underlying property is sold or the loan is refinanced.

3. Reduced monthly payments.

Homeowners wishing to reduce their monthly payment should contact their lender directly.

The loan modification plan requires the lender to reduce the mortgage payments to no more than 31% of the borrower’s debt to income (DTI) ratio.

4. Lenders incentive to modify:

Participating lenders will receive $1000 in incentives from the government  to qualify homeowners for the loan modification plan.

To assist the homeowner in reducing their principal, the loan modification plan will provide an incentive to qualified homeowners for the next 5 years.

5. Homeowners and successful loan modification:

A homeowner can benefit from the loan modification plan by successfully meeting the requirements of paying the installments on time. This automatically lowers the principal amount of the loan that the person has borrowed. This is an added benefit of this loan modification plan.

It is necessary for a borrower to retain all the documents  to prove that the loan modification plan was approved. This will allow the homeowner to keep a record of all the current happenings in the loan modification program.

The Loan Modification plan has been warmly accepted by homeowners and has enabled thousands of people reduce their mortgages. However, lenders are extremely reluctant to modify loans, and only a very small number of loans have been modified.

When you are about to lose your home, you don’t care about anything else. It consumes your every thought. The only way you will be able to relax is to get the foreclosure called off so you can go back to enjoying your home and your life. Well, as a last ditch effort there is a method available to stop foreclosure on your home.

Filing for bankruptcy is bad for your credit, but sometimes it can save a home from foreclosure. Under chapter thirteen of the US bankruptcy code, debtors are allowed to submit a plan for repaying their debts. The foreclosure process is halted as soon as you file for chapter thirteen. However, your repayment plan is subject to review by creditors and must be approved by the bankruptcy court.

You can’t file for bankruptcy until after you have completed credit counseling. This requirement serves the purpose of making sure that bankruptcy is really the only way you will be able to pay off your debts. The credit counseling company will work with you try to come up with a way for you to repay your debts without bankruptcy. Their proposed plan must be submitted when you file.

Your repayment plan must be submitted to the court within fourteen days from the date you file your bankruptcy papers. Most likely, your lawyer will submit your paperwork for you and will do it all at the same time. Sometimes the plan will be filed later so that you can have an earlier filing date so you can get the foreclosure process stopped and give yourself a little more time to prepare the plan.

After filing, a creditor’s meeting will be set up. You must appear at this meeting to answer your creditors’ questions about your repayment plan. Some of your creditors may question the amount you are proposing to pay. They want to make sure that you will not have any money left over after paying your debts and necessary living expenses.

After the creditor’s meeting has been completed, your repayment plan will be reviewed by the court to make sure that it meets the requirements set forth in the bankruptcy code. It can take up to 45 days for approval, but you have to start making payments according to the terms of the agreement within 30 days.

The biggest drawback to using chapter thirteen bankruptcy to stop foreclosure is that if you are unable to pay the payments as agreed, you could still end up going through foreclosure. The judge can dismiss your case or make you go through chapter seven, where your assets are sold to cover your debts, if you don’t pay everything as agreed. For this reason, you should consider all of the potential risks and benefits before deciding to go ahead with filing for bankruptcy.

For assistance with loan modification contact a qualified loan modification attorney that will look out for you and your family’s best interest such as Janian and Associates.