July 14, 2024

Tips for Foreclosure Prevention

If you cannot make your mortgage payment:

1.      Don’t ignore the problem.

Be realistic about your financial condition.  The further behind you get, the harder it will be to reinstate your loan. Waiting only compounds the problem and it will increase your likelihood of losing your house.

2.      As soon as you realize that you have problem, contact your lender.

Contact your loan servicer immediately and talk about alternatives to foreclosure.  They have options to help borrowers through difficult financial issues.

3.      Read and respond to mail from your lender.

Be sure to open all mail from your lenders and return calls promptly. The first notices will offer good information about foreclosure prevention options that can help you. Your failure to open mail will not be an excuse in foreclosure court and may result in additional costs.

4.      Understand your mortgage rights.

Locate your loan documents and go over them carefully so that you know what your lender may do if you cannot make your payments.   Learn about the foreclosure laws and timeframes in your state by contacting the State Government Housing Office.

5.      Know and understand your options for foreclosure prevention.

You can find valuable information about foreclosure prevention online at www.fha.gov/foreclosure/index.cfm.

6.      Contact a HUD-approved housing counselor for help and advice.

The U.S Department of Housing and Urban Development funds free or low cost housing counseling nationwide.  They can help your understand the law and your options and assist you in negotiations with your lender if needed.

7.      Keep track of your spending.

Review your finances and cut some unnecessary spending in order to make your mortgage payment.  

8.      Utilize your assets.

Sell some of your assets that you can part with—a second car, jewelry, etc. Maybe get a second job? Even if these efforts don’t significantly increase your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9.      Keep away from foreclosure prevention companies.

You don’t need the pay fees for foreclosure prevention assistance.  Instead, use that money to pay your mortgage.   Although many companies will offer their assistance, they will charge a hefty fee for information and service your lender for a HUD-approved housing counselor will provide free if you contact them.

10.  Watch out for foreclosure recovery scams!

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.          San Diego for sale by owner

[tags]real estate foreclosure, San Diego foreclosure, foreclosure tips,foreclosure[/tags]

 

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