Foreclosure is a very troubling reality for many homeowners. Unfortunately, for various reasons people end up losing their homes. But you do not have to be in that group.
What is foreclosure?
Backing up, we should explain that foreclosure happens when a homeowner stops making payments. It is the legal way the mortgage or lien holder can attempt to take control of the property. If this happens, this party can sell the home to pay the mortgage.
Protecting your home
If you are facing foreclosure, there are numerous steps you can take to protect your home. These tips could help you get back on track and stop the foreclosure process:
- Take a long, hard look at your finances. You may be able to eliminate things you do not need like cable or cellular phone plans. This can give you more money to devote to mortgage payments. Sometime, one has to make the hard decision that one simply cannot afford the home. In these cases, financial planning is a must. However, there may still be options.
- Call your lender as soon as possible. Talk with them about any assistance they can offer you to avoid foreclosure. Also, ensure that you open and read all mail from your lender. It may provide important information. Retain all communications from your lender; these document are likely to be important later.
- Consult with a foreclosure attorney regarding you legal rights and foreclosurue procedures. The more knowledge you have, the better chance you will have for an acceptable outcome. There may legal defenses to the foreclosue and mechanisms may exist to resolve your situation in a positive way.
- Watch out for foreclosure scams. Scammers may contact homeowners with mortgage trouble and offer them fake help. They might offer to help you keep your home for a fee and end up just taking your money while doing nothing. We recommend that if you are going to hire an attorney to help you with foreclosure, hire an attorney in your own state, preferably in your town. Make sure they have experience defending foreclosures.
- Consider the option of filing for bankruptcy protection. Filing for bankruptcy can stop foreclosure proceedings, if only temporarily, and discharge or reorganize a person’s debt. While aggressive, this option can help people make big changes that have a long-term impact on their finances.
It is natural to be scared or stressed about foreclosure. However, if you are in this situation, try to stay calm and consider these options that can help you avoid foreclosure and keep your home.