Avoiding Home Foreclosure With The Help Of A Credit Counselor

By Author: William Hauselberg
Total Articles: 816
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In the current economic climate, an increasing amount of home owners are finding themselves sliding that slippery slope toward foreclosure. Many feel hopeless and give up. Few seek the help of a qualified credit counselor. Seeking out foreclosure counseling to avoid home foreclosure will allow many Americans to save their home! For those that do not wish to stay in their home, a credit counselor may be able to assist the home owner with a short sale or deed in lieu of foreclosure to salvage their credit.

Don't Face Foreclosure Alone

Foreclosure counseling is widely available in every state across the nation and is a very useful tool for those in foreclosure. A counselor will help you to understand the foreclosure process, your rights, and any options available to you. They will even speak to your lender on your behalf after proper authorization is given by you.

If you are looking to stay in the home, the credit counselor will assist you in beginning the process to apply for a loan modification. You will be required to provide certain documents that will demonstrate your ability to repay the loan under the ...
... proposed terms. Providing three years of tax return, six most recent pay stubs, three months of bank statements, and a hardship letter explaining how the delinquency was created will assist the credit counselor in helping you avoid home foreclosure.

There are Options Available for Homeowners Facing Foreclosure

If you can no longer afford the home even under modified terms or do not wish to stay in the home, the credit counselor will assist you in beginning the process of a short sale. A short sale is the process in which the home is listed for sale at a value less than the loan amount. The bank agrees to take this lower amount as payment in full on the loan. Certain documents will be required by the lender in this situation as well and the credit counselor will help you prepare these documents. Selling the home via short sale will spare your credit rating of the affects of foreclosure. Another option is Deed in Lieu of Foreclosure. This means that homeowner will voluntarily relinquish the property to the bank in exchange for the loan being cancelled. This requires lender approval and a foreclosure counselor can assist you with the process.

Home foreclosure counseling is a great resource for those in foreclosure. At the very least, it will help you understand the process and respond accordingly.

Foreclosure councelling come is very handy to avoid home foreclosure. Home foreclosure counseling is indispensable under the current economic conditions too.