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If you're facing foreclosure, don't panic. Take steps right now to save your home or at least lessen the blow of its loss. Foreclosure Moratoriums Could Be Extended Foreclosures may be banned until 2022 if a new rule from the Consumer Financial Protection Bureau goes through.    The rule — which the CFPB says would benefit both underwater homeowners and mortgage servicers — would prohibit servicers from initiating the foreclosure process until after December 31 of this year. This  would allow for streamlined loan modifications to help post-forbearance homeowners get back on their feet.   If you are facing foreclosure, call your lender to determine your options, which can include loan modification, forbearance, or a short sale. When Will Foreclosures Resume? There’s no word on how quickly foreclosures would pick back up after the December 31 deadline passes.  In fact, the CFPB says there may even be situations when it will “permit earlier foreclosures” if th...

In September and early October 2010, several lenders suspended foreclosures due to questions about whether the transactions were being processed consistent with applicable state law requirements. Although nearly all of the foreclosures in question are expected to be fixed eventually, the current situation is creating difficulties and a new hurdle to the recovery of the housing and mortgage markets. Additionally, homes on the market without clear title will make sales much more difficult. It is expected that foreclosures in question are likely to be withdrawn from the market. The foreclosure problem isn't about whether some home owners had their homes wrongly foreclosed upon (there's been no evidence of that to date) but to what extent banks were taking short cuts on foreclosure procedures in states requiring judicial foreclosures. It is difficult to say what percentage of foreclosures that were improperly processed were. The assumption is that, for most of them, this may be onl...

People who have lost their homes through foreclosure (or short sales) or who have restructured their mortgage loans may qualify for tax relief under a new tax law, the Mortgage Forgiveness Debt Relief Act of 2007. Highlights of Mortgage Debt Relief: You may exclude up to $2 million of debt forgiven or canceled by a mortgage lender on a main home. Both mortgage restrucuring and foreclosures qualify Now available for the years 2007 through 2012. For more information, go to The Mortgage Forgiveness Debt Relief Act and Debt Cancellation .

Before buying a foreclosure you need to know what to look for. Do not just assume that because a house is a foreclosure that you are getting the home at a bargain. You will need to do just as much due diligence with your research as you would when you are buying any other property. There are also some unique issues and risks that need to be considered when purchasing foreclosures. Below are some tips on what to look for to ensure you are making a sound investment in a foreclosure: Some foreclosures accept bids and some are on the condition of sight unseen. Others you can go to the property but can not see the interior. In such cases you are gambling on the condition of the house. This can be a very risky move. If you are able to inspect the house before making an offer, do so thoroughly. Some homeowners, when faced with foreclosure, sell off appliances or cabinets to get some extra money. Some are bitter and purposely destroy parts of the home. Others still have not had the money for p...