How to Protect Yourself from Foreclosure

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs, Uncategorized

The foreclosure crisis is at an all-time high. With the era of easy mortgage loans, 100% financing, and sub-prime lenders coming to an end, many people are finding themselves with house payments that they can no longer afford. This can be due either to an adjustable rate mortgage that suddenly went way up, or from the loss of a job in a rough economy. Either way, if you’re facing a mortgage payment that’s becoming beyond what your budget can handle, there are ways to overcome it and possibly save your house.

First, don’t ignore the problem and hope it will go away.  It won’t. The farther you become behind in your mortgage payments, the harder it will be to catch up. If you become so far behind that your mortgage company won’t even work out a payment arrangement with you, then you’ve got real problems. So, take charge and make some calls as soon as you see a problem beginning to develop.

Next, try to work something out with your lender. You don’t have to wait until a foreclosure notice is filed against you to try to work it out with your mortgage company. Lenders don’t want to foreclose, as this is a big hassle for them. They would prefer you pay your mortgage so they can recoup their investment. If you contact your lender as soon as you know there is a problem, then they’ll be much more willing to offer you options to help you get back on track.

Finally, keep in close contact with your lender regarding your financial situation. Read and respond to any correspondence they send you, especially the first few letters, because these will give you lots of good information on ways you can avoid foreclosure with tem. If you don’t keep in contact with your lender, the lender will assume you’re not even going to try to pay the loan back, and you’ll end up in foreclosure court a lot sooner than if you’d tried to work something out. Most lenders are reasonable, especially these days, so your chances of working out a way to stay in your home through special payment arrangements are much higher now than in years past. Talk to your lender, keep in touch, and follow all of the options available to you, and you just might be able to keep your home.