Foreclosure can be a devastating experience, and you can try to avoid it at all costs. Lenders are in the buisness of making loans not owning homes so most will work with you to reach an arrangement that meets everyone’s best interests.
Tip 1: Pay your mortgage payment: Making late payments on your credit cards may damage your credit and elicit phone calls from collections agencies, but defaulting on your mortgage will lead to loss of a roof over your family’s head. So if your in financial trouble, make paying the mortgage your number one priority.
Tip 2: Be honest, forthright & proactive: If its truly not financially possible to make your mortgage payment at the scheduled time, and it must be late, don’t let your pride get in the way and CALL your lender- the sooner the better. When you do speak with your lender, be prepared to be forthright and honest. You will need to explain why you are unable to make the payments, provide all the details and documentation of your current income, and have a list of any other expenses yo have. Granted it may be a fair amount of work to prepare all of this, but utimately it could save your home from foreclosure.
Tip 3: Foreclosure laws in your state: For specific information regarding foreclosure laws in your state look at this website, http://www.uslossmitigation.com/states/index.html
Tip 4: Credit Counseling: If you’re having consistent problems making your mortgage payments as well as keeping up with your other debt, you may want to consult with a non-profit credit counseling agency. They can assist you with getting organized, budgeting and other financial matters that can help give you a leg up. You may also want to try http://www.debtadvice.org.
Tip 5: Private Investors: While there are most certainly legitimate investors who want to help out individual who are in trouble with their mortgage payments, there are also scam artists who prey on desperate homeowners. Beware of any deals that sound too good to be true and consult your mortgage professional before accepting any offer.
Tip 6: If all else fails: Sell your home. Downsize into a smaller home or rent for awhile, may make the most sense of all. Have your real estate agent prepare comps to determine a fair asking price. Then be honest with him or her about your situation so they can help you price the home to sell in the time frame you require.
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