Stop Foreclosure With Mortgage Insurance Shortfall Funding

Today's article is about stopping your bank foreclosing. We are wanting people to know that they don't need to sit back and let the banks foreclose. You don't need to be forced into going bankrupt and you don't need to loose everything just because your bank is trying to push you around!

Is it possible to have your bank try to foreclose your home from under your feet, when you nearly own it? Well, as you saw on Today Tonight, that's exactly what one bank tried to do. If you know you can't afford to keep living in your home, due to changes in your income, there are better ways then letting a real estate agent sell your home for a song, or letting the bank foreclose.

If you are faced with an issue where you can't find a buyer to purchase on a delayed term settlement, and you have little or no equity, there are options available to you too! This however requires you to act fast! As soon as you know that you are about to find it hard meeting your monthly payments, you need to put your home on the market with a real estate agent. You need to get three market opinions, and then provide this to your bank, with a complete financial statement.

You need to tell your bank that you are needing to sell, but they could be a short fall sale. Depending on the size of the shortfall sale, they can normally get the mortgage insurance company to cover this difference for you and quite often, this shortfall funding becomes an interest free loan that you pay off in your own time frame.

The other alternative to the mortgage insurance company is to let the bank sell your home for a really low price, and this would only make things worse for you and the mortgage insurance company. Quite often, this also will force the person being foreclosed, into bankruptcy because of the size of the shortfall sale.

We have seen shortfall sales end up being as much as $180,000 due to the banks selling the homes for a stupid price and they don't seem to mind one bit. Their loans are fully insured by the mortgage insurance company, so they get their money anyway, regardless of the price get.

We have seen many people in this position get shortfall funding assistance from the mortgage insurance companies, just by following these steps:

1. Tell your bank you are selling (before you get into arrears)

2. Tell your bank that you are going to need shortfall funding assistance with the mortgage insurance company. Tell them you have received market reports from three real estate agents that tell you their will be a shortfall.

3. Ask them to send you a financial statement assessment form for you to complete, and send it back with the 3 real estate agent reports.

4. At this point, the bank will normally send this on for the mortgage insurance company to assess.

You still need to get a contract for sale prepared by your solicitor or conveyancer and select the real estate agent you feel you trust the most. Then its a matter of waiting until you have offers from buyers.

If you end up with a $10,000 to $20,000 shortfall after all the fees and commissions have been paid, and the mortgage insurance company gives you an interest free loan to pay over a time that suits you, it can be a good alternative to going bankrupt or letting the bank sell your home for next to nothing.

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