Loan modification is a good option if your financial issues have been resolved and now, you are able to be regular with your mortgage payments. Your options for loan modification are reducing the interest rate, refinancing the debt and extending the length of the mortgage term. All these options will let you reduce the amount of your monthly payment, which in turn, would help you to stop foreclosure.
However, to qualify for the loan modification, you must prove to your lender that you are now out of your financial crises and are able to make timely payments. At the same time, you can give them an evidence that your income has been reduced from the time you have signed for the mortgage. It would let you reduce the amount of the monthly payment to the one that would be affordable for you.
Special forbearance is the case in which your lender can reduce the monthly payment amount or can stop the monthly payments temporarily. However, to make this work, you need to give an evidence to your lender that you have lost your main source of income and would not be able to make the payments until a particular time period.
After the special forbearance period, you would need to make the higher payments for a specific time period until your loan is current.
Another option for stopping foreclosure is filing for Chapter 13 bankruptcy. It will put your foreclosure at stay for about a period of six months. In this time period either you can work out with your lender to modify the loan terms or you can arrange the funds to pay your remaining debt. Even if your lender is granted relief from the stay, the foreclosure will be delayed for a period of at least 2 months.
In the case you just want to delay the foreclosure, you can file for Chapter 7 bankruptcy and if you also want to save your home, you must go for Chapter 13 bankruptcy.
"However, being a homeowner, you would not be aware of the different options you can work on for stopping foreclosure. It would be a good decision to seek help from an experienced Houston foreclosure agent as he will not only recommend you the best option but will also help you to stop the foreclosure and save your house."