Foreclosing on your mortgage is not something any of us want to do. But, in uncertain times it can come at us pretty quickly.
Any unforeseen problems can leave us vulnerable.
It can be a scary time and your best bet is to seek advice. Being proactive can stave off the foreclosure and save your home.
But you need to act. Here are a few things you can do.
The first thing you need to do is act.
1. Don’t Ignore The Problem
Even after your first notice, you must take action. You might be tempted to just ignore the first notice assuming you will be okay. Even so, you must take these notices seriously.
2. Contact Your Lender
Make contact right away. They are not your enemy, they are simply doing their job. Contact them and find out what your options are. If you are expecting money but not immediately, they need to know that.
3. Gather Your Loan Information
Chances are you will be invited in for a meeting with your lender. You should not only bring all your loan documents but be very familiar with them. Are there any clauses or loopholes you are missing? Be very familiar with what is in them.
This should include statements from any payments you have made, insurance information, and any other letters or correspondence related to your mortgage, bank, or home.
If you have medical bills or you lost your income, have those documents with
you, as well. Bank statements and statements of all other income for the family should be included.
4. Know Your Rights
Laws vary from state to state so know what your state’s laws say. This can include being able to make up the late payments, late charges that may apply and any other fees or monies owed.
A foreclosure doesn’t happen overnight. There are steps and procedures that need to be followed. Knowing what these are can help save your home.
5. Ask For Advice
By asking about what your options are, you are opening up the door for a discussion. There may be options available you were not aware of. There may be help or assistance available, as well.
You can also contact free advice, depending on where you live, for advice. They may know of other programs available to help you through your slump and avoid foreclosure.
6. Review Your Budget
This is a great time to take a serious look at your budget. Look for places where you can cut back on certain expenses that you can consider non-essential.
Cable or package television, dining out, expensive morning coffees and snacks, and memberships for gyms and magazine subscriptions. Weigh all of these on how much income you have to what needs to be paid off.
7. Ask Family
If you have family members who may be able to help you, don’t be shy about asking them. They may be more forgiving than a bank or lender and won’t likely be sticklers about payback or interests.
8. Sell Before Foreclosure
Once you have tried all other options, you may be able to sell the home or turn it over to the lender. If you have equity in the home, you can sell it and use the money to pay off the mortgage loan. In this scenario, selling to a professional home buyer like Contenza Properties may be the right choice for you.
You can also hand over the title of the home to the lender to avoid foreclosure. If you do that, they will sell the house for you.
Avoiding foreclosure means acting right away. Take action and start the process of saving your home before you lose the home. Know what your rights are and what your options are.