Avoiding foreclosure may be possible, if you read use some of these tips. Mortgage payments getting behind, is your lender calling you and sending letters? You should know a few things before you throw in the towel. Here are some tips to avoid foreclosure of your property:
The last thing you want to do is ignore letters from your lender
– Contact them immediately
– Contact a consulting agency that is HUD approved
If you are not able to pay your mortgage and are facing foreclosure:
1. Do not ignore the calls and letters
The longer that you ignore them, and fail to make an agreement that reinstate your loan, the harder it will be to save your home.
2. Once you realize that you have a problem contact your lender
Most people think that the lender wants your home back, this is not the case, and lenders do not want your home. Most of them have option that can help you get back on track and avoid foreclosure.
3. Mail from your lender needs to be opened and responded too
The first notice usually usually contains very useful information about how to prevent foreclosure. If may also have details about some of the options that are available. Additional letters will contain important legal information and possible pending actions about the home foreclosure. Not opening and responded to the mail will not be an excuse during the foreclosure process.
4. You have rights as a homeowner
Review your mortgage documents that they will explain what the lender can do in the event that you do not make you payments. Learn as much as you can about home foreclosure law and time frame in your state. There is a wealth of information available on the internet.
5. Foreclosure prevention options are available
There is valuable information that you can learn about foreclosure prevention options. This is commonly referred to as loss mitigation; you can find information-using websites, there are many websites that provide free information and different options that you may have to prevent foreclosure.
6. Find a HUD approved housing counselor
Free or low-cost help is available by contacting an approved counselor. Counselors will assist you in understanding the laws and options that you have available. They will also organize and represent you during the negotiations with your lender, if you require.
7. Spend wisely; priorityize expenses
After personal heath, preventing foreclosure and keeping your home is your first priority. Track your expenses; Eliminate anything that is not a necessity so that you can make your payment. Expenses that are not required such as TV, club memberships and entertainment you can eliminate. Stop paying your credit cards and other "unsecured" loans, make paying your mortgage your priority.
8. Assets = Cash, use them
Own a second vehicle, expensive jewelry, insurance policies that you can cash in? These can all help you get your loan reinstated and avoid foreclosure. What about second jobs, the additional income is helpful to your situation and may help avoid foreclosure. If this is not enough to get you back on track, it will at least demonstrate to your lender that you are doing everything that you can do to prevent foreclosure.
9. Foreclosure prevention companies need to be avoided
Paying additional fees to prevent foreclosure, does not make since, use the money and make your mortgage payment. Companies that are for-profit and charge you for negotiating with your lender charge large fees and often times are sufficient to make a couple mortgage payments. This information is available free and you can negotiate with the lender yourself, just talk to them.
10. Avoid foreclosure recovery frauds, you will lose your home
firms that contact you asking to sign paperwork so that they can immediately stop foreclosure, are bad news. Often times you are signing over the title of your home an becoming a "renter" in your our property. Never sign documents unless you fully understand and read all the terms. You should always contact an attorney, or other professionals.