Consumer Money Resource Bills.com Urges Homeowners in Danger of Foreclosure to Ignore Industry Confusion and Take Immediate Acti

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-- Personal Finance Experts Explain Six Alternatives to Foreclosure --

SAN MATEO

, CALIF.

– Oct. 26,2010 –

In recent months, the foreclosure process has started, stalled, and re-startedfor many homeowners as banks, regulators and lawyers uncovered systemic issuesand faults. That has left homeowners that are in foreclosure or in danger offoreclosure with a lack of quality information and clear direction. Consumermoney resource Bills.com today urged these homeowners not to play the waitinggame and instead take action to avoid an even larger mortgage bill orprotracted legal battle.

“Homeownersfacing foreclosure are being bombarded with confusing and often opposingmessages right now, but the meter has not stopped running,” said Ethan Ewing,president of Bills.com. “It is imperative that that these individuals reach outto their lender now to avoid an unwelcome outcome later. The most dangerousthing a homeowner can do is nothing.”

Mortgagelenders typically lose money when they foreclose on a property, so they areoften motivated to reach some type of resolution before having to initiateforeclosure proceedings. These can take many forms, but it’s important torecognize that lenders will usually respond to an offer of settlement.

Homeownersconcerned about their ability to continue paying on a mortgage, or thosealready behind on their payments, should not consider the recent confusionsurrounding foreclosures as a temporary relief. Instead, they should takeadvantage of the opportunity by reaching out to their lender or a reputablethird party to open a line of communication.

Inaddition to contacting their lender directly, homeowners can contact thirdparty organizations such as the nonprofit Neighborhood Assistance Corporationof America (NACA), which is geared towards helping low to moderate-incomehomeowners. Federal programs such as Home Affordable Modification Program(HAMP) are also available to those in need.

“Thereare many legitimate foreclosure resources out there for homeowners who havetried to go it alone before or prefer not to negotiate directly with theirlender,” continued Ewing. “But homeownersshould avoid those who promise fast, advantageous settlements. Foreclosuresettlements are usually difficult and complex – if it sounds too good to betrue, then it probably is.”

Someof the potential alternatives to foreclosure that you can discuss with yourlender or chosen representative include:

·        

Forbearance:

A temporary agreementwith your lender that delays mortgage payments for a short time. Lenders aregenerally only willing to allow this avenue if you can prove that you will beable to restart your payments and bring your mortgage up to date. Terms canvary greatly by lender, so be sure you clearly understand the terms of yourspecific agreement.

·        

Reinstatement:

This occurs when youare behind on your mortgage payments and agree to a lump sum payment by aspecific date that brings you current on your loan status. This is normallypart of a forbearance agreement.

·        

Repayment:

This is a negotiatedplan that allows you become current on your mortgage by making catch uppayments over a fixed amount of time or by combining a portion of your overdueamount with your regular payments until you are current.

·        

Loan Modification:

This option has gained themost notoriety over the last few years because of government and non-profitprograms that incorporate loan modification. In this course of action, theterms of your loan are adjusted – normally the amortization table or a lowerinterest rate – to sizably affect the amount of your regular payments. In thisway, the bank avoids foreclosure while you retain your home through a moreaffordable monthly bill.

·        

Short Sale:

If it is impossible toreach an agreement with your lender to maintain the mortgage, then a short salecan help avoid an actual foreclosure. In a short sale, your lender agrees tolet you sell the property for less than it’s worth and they will absorb theloss. This helps you avoid the stigma and credit damage of a foreclosure, whileallowing the lender to recoup more money than in a foreclosure. As with otherarrangements, terms can be radically different with each lender so be sure tounderstand the terms of your specific agreement.

·        

Deed-in-Lieu ofForeclosure:

This is a last resort option that essentially allows you to give your propertyback to the lender in return for cancelling the mortgage. While this will hurtyour credit score, the damage is less severe than a foreclosure.

For more information about stopping foreclosure, visitthe Bills.com

Foreclosure Resource Center

. To ask a Bills.com expert a direct question, please visit

Ask Bill

.

About Bills.com

Bills.com is the leading resourcefor free and personalized money help. Founded by a group of financial expertsdedicated to helping consumers save time, money and stress, Bills.com isdesigned to give consumers confidence in making money decisions. The siteoffers useful information, powerful tools, and real money experts to giveconsumers the information they need in the way that they want it.

News Source : Consumer Money Resource Bills.com Urges Homeowners in Danger of Foreclosure to Ignore Industry Confusion and Take Immediate Action