Tips for Avoiding Foreclosure. Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?

If you are unable to make your mortgage payment:

1. Don’t ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found online.

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender, if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses–cable TV, memberships, entertainment–that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.

8. Use your assets.

Do you have assets–a second car, jewelry, a whole life insurance policy–that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies.

You don’t need to pay fees for foreclosure prevention help–use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.

10. Don’t lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately and if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional or a HUD-approved housing counselor.

Source: https://www.hud.gov/


Are you ready to take the next step to buy your home and start building a legacy for your family?…Let me help you!

I am a Brazilian Licensed Realtor at Re-Connect, LLC with 17+ years of experience in the Real Estate industry. I speaks 3 languages (Portuguese, English, Spanish)

CALL NOW: (617) 201-9188 Ana Roque |209 West Central Street, Natick, MA  

 

Related posts:

3 Tell-Tale Signs You Have A Good Real Estate Agent
3 Tell-Tale Signs You Have A Good Real Estate Agent. Buying Or Selling A Home Can Be A Stressful Experience, So Having A Great Real Estat...
Buying A Foreclosed Home, read this article:
Buying A Foreclosed Home, read this article: Pros, Cons And A Step-By-Step Guide. Have you ever considered buying a foreclosed home – a diamon...
5 Mistakes That Can Make House Flipping a Flop
5 Mistakes That Can Make House Flipping a Flop. It looks so easy! Buy a house, make a few cosmetic fixes, put it back on the market, and ...
When to refinance your mortgage
When to refinance your mortgage. Like many homeowners, your monthly mortgage payment likely makes up the largest expense on your list of ...
Massachusetts Real Estate Stats and Trends for 2023
Massachusetts Real Estate Stats and Trends for 2023. MASSACHUSETTS - The real estate market in Massachusetts is one of the most dynamic in th...
Foreigners Getting Mortgages Without Social Security Number and FICO?
Foreigners Getting Mortgages Without Social Security Number and FICO? Are you a foreign national in the process of getting a mortgage in ...
6 reasons to refinance your mortgage
6 reasons to refinance your mortgage. If you’re a homeowner, you might be hearing everyone—from your neighbors to news anchors—talking about r...
10 Benefits Of Working With A Real State Agente When Buying A Home
10 Benefits Of Working With A Real State Agente When Buying A Home. We all know it can be browse the internet for your next home but when...
Can I Buy a House with My Friend? How Mortgages Work Without a Spouse
Can I Buy a House with My Friend? How Mortgages Work Without a Spouse. About 38% of homebuyers are now millennials, making them the large...
Could Mortgage Rates Fall to 4.5% Next Year?
Could Mortgage Rates Fall to 4.5% Next Year? Many experts think mortgage rates will keep rising, but several experts see a big reversal. ...

Leave a Reply