How to avoid foreclosure
Okay, you know you are behind in your mortgage payment and you realize that foreclosure is just around the corner if you do not do something very soon. Now, you may wonder, what can I do? I just do not have all the money I need to pay all my bills
at this time. Well, there are a few basic things you can do in order to avoid foreclosure.
- Do not ignore the problem. You will begin to receive letters and telephone calls from the lending company regarding your late payments and you should not ignore them. They are not going to go away like a bad dream. You do in fact owe the debt and they want their money. The best thing to do
is to contact the lending company just as soon as you know that you are not going to be able to meet your financial responsibility. Before you call them, gather information such as your monthly income and your expenses. Also, be ready to tell them why this financial difficulty has occurred.
With this information, they may be able to help lower your mortgage payments so you can afford to pay, or they may have other options available.
- Do not move from your home. You may be able to find some assistance with your mortgage payments if you are under financial burden. If you abandon your home, these avenues maybe closed forever.
- Look for resources. There are many different agencies out there that maybe able to assist you with your mortgage payment. The best place to start is HUD. This is a government housing counseling agency that has several resources at their disposal, to aid people just like you with their financial
burdens. They will be able to give you advice and help steer you in the right direction so you do not lose your home.
There are other options that maybe available. You should talk with your lending company regarding such things as special forbearance, mortgage modification, partial claim, and pre-foreclosure sale.
A special forbearance can be given by your lending company. This is like a new arrangement for you to pay back your loan. It may suspend your payments or give you a reduced payment for a certain amount of time.
A mortgage modification will allow you to refinance your home loan or to extend the term of your loan.
A partial claim is when the lending company works with FHA for you to obtain a payment from them to catch you up on mortgage payments that are in arrears.
Pre-foreclosure sale will help you avoid foreclosure, but you will have to sell your home. In this type of sale, you will sell your property for less than what you owe, the lending company will receive that money, and you will still owe them the balance.
The lending company does not wish to foreclose on your home and they will do everything in their power to help you if you just ask.
Protect yourself and your family by otaining mortage life insurance for yourself, and maybe your spouse also.