7  STEPS to AVOID 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.  Try to find a workable solution before you get further behind and it becomes harder to reinstate your loan and more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.  Lenders really do not want your house! Most of them are willing to help you work through your financial difficulties.

3. Open and respond to all mail from your lender, answer all phone calls.  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 notice of pending legal action.  Your failure to open the mail will not be an excuse in foreclosure court.

4. Contact a HUD-approved housing counselor, or other professionals that can assist you.  Housing counselors, real estate attorneys, or your accountant / CPA 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.

5. 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.  Eliminate non-essential expenses – cable TV, memberships, entertainment. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.

6. Use your assets.  Do you have assets – a second car, jewelry, a whole life insurance policy -that you can cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Get creative,  use e-Bay and Craigslist to sell unused items for needed cash.

7. Avoid foreclosure prevention companies, recovery scams, and “investors” who offer to purchase your home for a ridiculously low price. You don’t need to pay fees for foreclosure prevention help – use that money to pay the mortgage instead. Many for-profit companies may 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.  Beware of “investors” who offer to purchase your home for quick cash.  You may still be held liable for any unpaid balance on your mortgage if you sell your home for less than the outstanding balance.

For a no-obligation, no-cost consultation with a local team of real estate professionals and attorneys, to evaluate your situation and help you determine what options you may have, call Home Solution Real Estate Services at 888-485-4356, extension 400, or email us at info@teresabcooper.com.

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