In order to stop foreclosure Alaska homeowners who have fallen behind on their house payments have options to help them through this financially trying time. In order to keep a home heading toward foreclosure, certain steps must be taken. If you sit back and fret - or simply try to ignore the problem - you will lose your home.
Don't Give Up
It's natural to want to throw your hands in the air and give up when you have fallen behind on your house payments. Don't give up, but instead call your lender. They don't want your house any more than you want to lose it. Oftentimes if you take steps to stay in contact with your lender and show that you are earnestly trying to rectify the problem the lender will try to work with you. Lenders may have options that can help you through your financial troubles. Take the time to discuss your options so that you understand the process as well as the most likely outcome. As difficult as the choices seem, if you pay nothing you will lose your home. Beyond that, your credit will be destroyed, you'll have to find another place to live -- and on top of all that there is a chance that you could receive a bill when your house is sold. To see specifics on how to stop foreclosure Alaska laws pertaining to the matter can be viewed online.
Back Payments
Reasons for falling behind in house payments vary from person to person. If your reasons were due to temporary circumstances and you can make back payments to bring your account current then this is the best possible solution to not only keeping your home, but restoring your good credit over time. If you need time to make up your past due house payments you should contact your lender and see if they will allow you to pay the overdue amount over several months.
Reorganize Your Mortgage
Another possible option might be to reorganize your note and move what you owe to the end of the loan. To sell this idea to the lender you'll have to prove that the source of the reason you fell behind in the first place has been remedied, and that you don't have enough to "make up" the missed payments on top of your regular house payment, but that things have returned to "normal" and you can resume your monthly payment without question. If they reorganize the note, the amount owed is added to the note and extends your mortgage for a little longer.
Sell Your Home
Depending on the real estate market, selling your home to get out from under the debt is one option. However, if the market has soured or is a buyer's market, this may not be a viable option. If this is the case, you may try contacting a real estate investor to see if they might be interested in purchasing your home.
Refinancing
This option also requires contacting your lender to see what your options might be. If you have built up equity in your home you may be able to refinance your home loan and walk away with a lower payment.
Be wise in your choices. Don't fall for predatory lending where the lender (or contracter) in Alaska takes advantage of the borrower's lack of understanding of the agreement until it is too late.
Claim Bankruptcy
Think hard and long before you make this choice and consult a lawyer for advice. Bankruptcy laws change and you will need to know what the outcome would be before taking such a drastic step. Sometimes it sounds like a quick fix, but in the long run it can cause you more trouble and in many cases still leave you liable for outstanding loans and credit cards. For questions, contact the United States Bankruptcy Courts for the District of Alaska.
Personal Help From Outside
If you have a friend, relative or organization that you can turn to for help, this is also worth a shot. Community organizations such as churches and charities can sometimes lend a hand in instances of pending foreclosure.
Secure Program
A new program available through the Federal Housing Administration is open to Alaskan residents with good credit who are in danger of losing their home to foreclosure. Known as the "Secure Program", this FHA set up this program in hopes of helping people keep their homes but allowing borrowers to refinance to a fixed rate loan. This program will run through December 31, 2008. As with any government assisted program, rules apply. In order to qualify the home owner:
- Must have an ARM that has reset
- Income to make new mortgage payments
- Good credit
- History of making mortgage payments on time
Stop Foreclosure Alaska Laws
Be aware that in Alaska lenders have the right to foreclose on deeds of trusts or mortgages in default. They can use judicial or non-judicial processes to foreclose. Check Alaskan Foreclosure Laws, contact your lender, and be proactive in trying to save your home and stop foreclosure. Hud offers help for those trying to avoid foreclosure in Alaska. Visit Housing Counseling: Alaska to see what steps are available to help you.
If you're reading this and not facing foreclosure but wondering about purchasing a home in the current market, be sure to visit Alaska Housing Finance Corporation's site to learn about options to help you stay financially stable and in the Alaskan home of your choice.
