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Alabama Foreclosure Help
If you live in Alabama, and are struggling to pay your current mortgage or are looking for a mortgage to buy your first home, you have several resources to choose from to help you get started. This series of three articles will look at the steps you should take to protect your home from foreclosure, and how to find the best deal on your first mortgage.
What exactly is a “foreclosure,”/”mortgage delinquency,”/“serious delinquency,” and a “default”?
Foreclosures, home owner loan delinquencies, and defaults make reference to distinct levels of personal difficulty with a property finance loan. A foreclosure is the closing reason for financial problems with repaying a mortgage. It occurs when a property holder has not yet paid the house loan for a prolonged enough period of time that the financial institution or loan servicer has declared and obtained the legal right to obtain the mortgaged property to be able to fulfill the mortgage loan. A home loan amount you are behind, on the other end for the scope of economic distress, may mean that a house loan payment is only a handful of days or weeks late. Generally house loan delinquencies are put into groups by the quantity of days late (30 to Fifty nine days, Sixty to 89 days, and Ninety or even more days late). The more time a property finance loan is delinquent, the harder it commonly is to find a way to stop real estate foreclosure. Loans which are in property foreclosure
Let us start with the bad news, foreclosure.
First, what you already know. Lenders use foreclosures to take possession of your home if it was used as security on a mortgage you have missed payments on. Receiving a notice of default warning you that foreclosure proceedings have started is a traumatic experience, no doubt about it. The good news is there are steps you can take to stop a foreclosure. Foreclosures are expensive procedures and most lenders are more than willing to stop a foreclosure and help you find a mortgage workout that allows you to cure the default on your mortgage. Your first step should be to contact a HUD approved housing counselor. Housing counselors are familiar with local foreclosure laws and what foreclosure avoidance (federal, state and non-governmental) programs you can apply for. Call 888-995-HOPE or visit HUD’s website for a list of free housing counselors near you. You can also contact the Alabama Federation of Housing Counselors and Agencies (AFHCA) for extra help in finding a housing counselor. Then contact your lender’s loss mitigation department (your counselor can help with contact details) and explain your situation. If you still have a steady income and can afford reasonable mortgage payments your lender will usually be willing to renegotiate your loan’s terms. If you have lost your job or your income is too low to afford your mortgage there are still federal and state programs that can help you save your home while you are looking for a job. One of these programs is the Making Home Affordable Unemployment Program (UP), which can cover your housing expenses while you are looking for a job.
If you feel your lender has treated you unfairly or is making unreasonable demands you should contact a lawyer. The Alabama State Bar and Legal Services Alabama (1-877-393-2333) both offer free and low cost representation for low- to moderate-income borrowers. Lawyers can provide you with details on your state’s foreclosure law and audit your mortgage for any mistakes or illegal clauses.
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