You may be in big trouble in keeping up with the scheduled payment or you may have received a notice from the lender saying you should call them. Remember:
>Letters from your lender are important. Do not ignore them.
>Contact your lender immediately
Let us say, you are currently unable to pay the scheduled payments for your mortgage:
1. Never ignore the problem. This is the simplest way (yet difficult) on how you can get rid of foreclosure
While you procrastinate by not making the payment, or contacting your lender, or seeking help, the possibility that you will lose your house increases.
2. Now that you realize you have a problem, contact your lender. Be brave, they are the best resource who can help you in your current state.
Lenders aren’t there to take your house from you, instead, they are there to help borrowers through difficult times.
3. Open and respond to all mail from your lenders.
The first letter will give you awesome ideas about foreclosure prevention. They are giving options that will definitely help you during your financial struggles. Next, you will receive letters that may possibly include important notices about pending legal action. You will never be excused by saying “The letters was never opened…”
4. Know your rights – your mortgage rights
Find your loan documents. It is important that you pay attention to details that will help you know what your lenders may possibly do in accordance with the stipulations of the agreement, if you’re not able to settle your payments. If you want to know laws and timeframes of foreclosure on your state (this is state-dependent) you can contact the State Government Housing Office.
5. Understand foreclosure prevention options. There’s a lot of information about it online, jump in and do your research.
6. Contact an HUD-approved housing counselor The HUD or U.S. Department of Housing and Urban Development, can offer a very affordable housing counseling nationwide or they can even do it for free. The housing counselors are a great resource to help you understand both the options and the law that entails it. They will be there to represent you in negotiations or organize your finances, when you need it.
7. This may be difficult on tough times, but you needed to. Prioritize your spending.
Part of taking care of yourself, is keeping your house. You can cut your spending by reviewing your finances. This can help you with the settlement of your mortgage. You may cut your expenses on cable television, entertainment, or even club shares that you don’t actually need. You can also delay your credit card and other “unsecured” payments until you settle your mortgage.
8. Your assets can save your house – use them
Look around you. Check if you have assets that you don’t really need, this may include a second car, or maybe a jewelry that you don’t like, or an insurance policy that you can sell for cash. These will all help you restructure your loan? Can you or any family member get an extra job to help you generate an additional income?
These efforts may not greatly increase your available income or even the cash that you need, but they can demonstrate to your lender that you are willing to make sacrifices to keep your home.