Don’t be put into a situation that causes financial fiasco! Click here to read about how you can avoid foreclosure and stick it to the man.
Are you on the verge of losing your home?
You’re not alone. Every three months, 250,000 new families enter into foreclosure.
If it seems like there’s nothing you can do to avoid foreclosure, you don’t necessarily have to surrender.
It may not be too late to stop foreclosure and you could save your home.
Have You Done Everything to Avoid Foreclosure?
If you’re curious, you can read about the process of foreclosure here.
But there may still be some things you haven’t done yet to cover your bases.
We’ve got five things you can do to prevent the possibility of foreclosure.
1. Pay Attention to All Correspondence
If your lender is sending you information in the mail, don’t ignore it.
There could be valuable information in there to help you avoid foreclosure.
And eventually, some of that mail you’ve ignored may include notice of pending legal action. Not opening it can’t be used as an excuse should you need to go to court.
2. Keep Your Payments Current
If you’re in the position of having to pay either your credit card bill or your mortgage, opt for your mortgage.
To get consumers to pay, credit cards quickly inform their customers that they’re behind a payment.
Banks, on the other hand, won’t let your lender know that you’re late on payments until you’re 60-90 days late. And by that time, you may already owe fees and late penalties.
Obviously, it’s never a great idea to put off paying a bill. In both cases, doing so will have a negative impact on your credit score.
But not paying your mortgage will hit your credit even harder. And you run the huge risk of losing your home.
3. Use Your Money and Assets Wisely
If you’re struggling to pay your mortgage, it’s time to ask yourself if you really need things like satellite TV service or a gym membership. The money you save each month by forgoing these could go toward your mortgage instead.
Also, if you have assets such as jewelry, a second car, or a whole life insurance policy, you could sell them for cash to help reinstate your loan.
Additionally, can you or someone in your home find additional ways to bring in income?
Even if all of these measures don’t allow you to pay the full amount of your mortgage, they demonstrate to your lender that you’re willing to make sacrifices to avoid losing your home.
4. Seek Counsel
Your lender should be able to tell you about different options.
Or you can find a HUD-approved housing counseling agency. These free or low-cost counseling services are available nationwide and can help you understand the laws and options available to you.
When you call, be sure to have your loan number, the reason for default, current income, and your expenses. And if your loan is in bankruptcy, they’ll need to know this as well.
5. Don’t Fall For Scams
The sad truth is that while you’re struggling to keep your home, there are for-profit companies looking to prey on you.
For a fee, they’ll promise negotiations with your lender. Some will even claim they can stop your foreclosure immediately. Most of these services are scams so steer clear of them.
And never EVER sign any legal documents without fully understanding its contents.
Wishing You the Best of Luck
We hope that the above tips will help you to avoid foreclosure and save your home.
And for more helpful advice and tips on home-related topics, keep checking back with our blog.