Tips on How You Can Avoid Foreclosure

 

If you cannot make your payments or falling behind on your mortgage don’t ignore the problem and be proactive.

 

  • Don’t ignore the problem-The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your home.

  • Contact your lender as soon as you realize that you have a problem-Lenders do not want your home. They now have options to help borrowers through difficult financial times.

  • Open and respond to all mail from your Lender-The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse to stopping the foreclosure.

  • Know your mortgage rights-Find your loan documents and read them so you know what your lender may do if you cannot make your payments. Learn about the foreclosure laws and timeframes.

  • Contact an Approved Foreclosure Housing Counselor-The U.S. Department and Urban Development funds free or very low cost housing counseling. Housing counselors can help you understand the law and your options, organize your finances, and represent you in negotiations with your lender if you need assistance. Call 800-569-4287 or to see a list just click this link Foreclosure Housing Counselors.

  • Prioritized your spending-After healthcare, keeping your home should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses such as cable TV, memberships, and entertainment that can be eliminated. Delay payments on credit cards and other unsecured debt until you have paid your mortgage.

  • Use your assets-Do you have assets, maybe a second car, or jewelry, whole life insurance plan that you can sell to help you reinstate your loan. Can anyone in your household get a second job to bring in additional income? Do you have a 401K to borrow funds from?

  • AVOID FOERCLOSURE PREVENTION COMPANIES-You don’t need to pay fees for foreclosure prevention help…use the money to pay your mortgage instead. Many for-profit companies will contact you and promise to negotiate with your Lenders. While this may be a legitimate business, they will charge you hefty fee (two to three months mortgage payment) for information and services your Lender or a HUD and CHFA approved counselor will provide free if you contact them.

  • AVOID REAL ESTATE AGENTS CONTACTING YOU TO SELL YOUR HOME IN A “SHORT SALE”-A short sale should be your last resort, after you have contacted a housing counselor, after you have contacted your Lender, and after you have talked to attorney about bankruptcy (mainly chapter 13); then if all else fails, then consider doing a short sale and contact a Realtor© who is trained in performing a short sale. Many short sales are being done, when in fact many homeowners can save their home by following these tips.

  • Don’t lose your home to foreclosure recovery scam-If any firm or investor claims they can stop foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home. Never sign any legal document without reading and understanding all the terms and getting professional advice from an attorney if you do not understand what you are signing. Remember, “If it sounds too-good to be true, then it is”. Foreclosure Page