Before discussing the subject of Foreclosure Prevention, let us first get a good idea about what is meant by foreclosure. This knowledge could help you to understand what foreclosure prevention Jackson, MS homeowners have access to.
What is foreclosure?
Most individuals cannot afford a home on their own money. They would, most probably, have to get a loan from the bank. The individual will be expected to pay back this loan according to a pre-determined plan of loan repayment. This plan would involve paying the loan back in small amounts on a monthly, half-yearly or annual basis. The individual is not supposed to miss any of the installments. If the individual does not pay all of the installments or misses any of the installments, he is liable to pay an extra amount as a late payment fee. This is the time when the foreclosure prevention Jackson, MS process can begin.
If the individual exceeds the permitted number of times for which he can be excused, the bank has the right to take legal action against the individual. The bank can try and recover the amount that is owed to them through the sale of the property, to make this step possible the lender would have already obtained the rights to the property while passing the loan for which it was collateral. The bank or the financial institution, which plays the role of the lender, will give the individual enough time to come up with the balance amount due to them before proceeding with the foreclosure procedures. A professional foreclosure prevention Jackson, MS lawyer can assist with these types of bank negotiations.
A home which is being foreclosed will be put up for a public auction and the amount that is due to the financial institution will be deducted from the total sale amount and the rest of the money will be handed over to the homeowner. If they do not want to lose their home there are many routes to foreclosure prevention Jackson MS homeowners can take to avoid foreclosure.
Learn the law:
Laws are not made without reason. There is a law that states that the homeowner has the right to take the bank or any other financial institution to the court if he feels that the foreclosure is not fair. This law was made to help those who are a victim of predatory lending techniques. Some of the financial advisors are not aware of the power of this law and fail to use it to aid in foreclosure prevention Jackson, MS cases.
Work out a new loan plan:
It is not always the case that the bank wants you to lose your home. With this type of foreclosure prevention Jackson, MS homeowners should know that the bank may be willing to reach a compromise and work out a new loan repayment plan. You can sit down with your financial advisor and draft a new plan that is within your budget and agreeable with the bank.
The particular kind of loan, in which the interest rates and installment amount changes, can be a trap. It is difficult to pay such installments regularly as you may face an amount, which happens to be larger than you expected for the month. You could request a loan modification from your bank. This could help to make the loan easier to pay.
If you use the method of forbearance you will be allowed to pay reduced amounts for a while. This can be done when you are facing a financial crisis. You can start paying the loan back as normal once the period is over.