Am I Going To Be On The Street?
If this is the first time you have received a foreclosure notice, it can be pretty scary. The first thing that rushes to your mind is if the bank will throw me out onto the street. What will happen to me and my family? Oh, the embarrassment.
Rest assured that the bank doesn’t want to throw you out. They just want to protect their investment. They would love nothing better than to see you back on your feet and for the bank to be receiving a return on its loan. As a matter of fact, if the bank has too many loans that are behind (NPN – non-performing notes) for 90 days or more, the bank has to answer to the US government regulators. Luckily, the government has put into place many laws to protect homeowners from unscrupulous banks and give opportunities for the homeowner to get back on their feet. Some programs allow for a reduction in principal (original amount of the loan). Some programs allow for the reduction or elimination of interest and late fees. There are other programs that allow you to restructure the loan with a lower interest rate. All this depends on the value of your property, the amount of your loan and if you qualify to change the terms of your original mortgage, i.e. do you have the income to pay from today going forward.
Your first course of action is to find a qualified professional who can explain all your options and give you an estimate of the time span you have to solve this problem. While you will not be out on the street anytime soon, it’s best to attack the problem as soon as possible!