How to Avoid Foreclosure
Here are some valuable steps you can take in order to avoid a foreclosure on your own property.
1. Don’t ignore letters from your lender
Do not ignore letters from your lender that warn you of your unsatisfied monthly payments. The further behind in your loan you become the harder it will be to reinstate your loan and more likely that you will lose your house.
2. Contact your lender immediately
Lenders do not want your house neither do they want your house to be foreclosed upon. No one really wins besides the buyer when it comes to a foreclosure.
3. Make sure you respond to all mail from your lender.
Typically the first letter you receive from your lender will offer good information about foreclosure prevention.
4. Understand your mortgage rights
Read your loan document to know what your lender may do if you can’t make your payments. Learning the foreclosure laws and timeframes will also help you understand the precautions needed in order to avoid a foreclosure.
5. Research foreclosure prevention options
You can find lots of valuable information about foreclosure prevention (also known as loss mitigation) on the internet. (See loss mitigation for more details.)
6. Contact a HUD-approved housing counselor
The US department of Housing and Urban development funds free or very low cost housing counseling nationwide. Housing counselors can help you:
- Understand laws and your options
- Organize your finances
- Negotiate with your lender
7. Prioritize your spending
Review your finances and see where you can cut spending in order to make your mortgage payments. Here are some costs that you can consider eliminating from your annual expenses to help pay your mortgage:
- Cable TV
8. Use your assets
Assets are vital in order to avoid your property being foreclosed on. If you have any assets like extra cars, jewelry, or even property, that can be sold for cash to help reinstate your loan sell them!!! Remember all of these assets are replaceable unfortunately once you have defaulted on a loan and your property is being foreclosed upon your credit core will drop and you will most likely never be able buy this property again.