If you’re a homeowner facing mortgage foreclosure, what are your rights and what should you do? No one is ever prepared to lose his home, but the unfortunate reality of today’s economics means that more and more people are in danger of finding themselves on the street. The seemingly never-ending recession has meant financial hardship for individuals and families across the U.S. Luckily, there are some strategies that you can take if you find yourself in this dilemma.
Dealing with a Mortgage Foreclosure
Here are eight quick tips if you’re facing foreclosure:
- Don’t ignore the problem. Understand your situation and recognize it for what it is. It will be harder to reinstate your loan if you fall too far behind in your payments.
- Contact your lender. When you realize that you’re having a problem, discuss options with your lender to find out what you can do to save your home. After all, it’s of no advantage to your lender if you stop making payments all together.
- Open your mail. Early notices generally include good information about preventing foreclosure, and later correspondence may have date-sensitive details about pending legal action, including important court dates.
- Know your rights. Review your loan documents so that you know what your lender can and can’t do if you can’t make your payments. In addition, contact your State Government Housing Office for a copy of the foreclosure laws in your state.
- Reach out to HUD. The U.S. Department of Housing and Urban Development (HUD) offers counseling programs across the country to help you understand the law and your rights, and HUD will also represent you in negotiations with your lender should you need help.
- Liquidate assets. If you have automobiles, jewelry or insurance policies that can be liquidated for cash to help reinstate your loan, then by all means do so.
- Avoid foreclosure prevention companies. Don’t pay fees to companies that offer to help you save your home. That money should be used to pay your mortgage. Even legitimate companies will charge hefty fees for services that a HUD counselor will provide free-of-charge.
- Stay away from scams! Don’t sign with any company that promises to act on your behalf to immediately stop the foreclosure of your home. You might be signing over the title to your house, making the company your landlord and yourself the tenant!
Above all else, stay calm in the eye of the storm. Remember, you’re not alone in facing foreclosure; it’s happening all across the country. Just arm yourself with these defenses to help you deal with the crisis at hand and you’ll find that things may not be as bleak as you think.
Getting Help
The assistance of a qualified foreclosure attorney can also be invaluable when facing mortgage foreclosure. Your attorney can help you take steps to stop the foreclosure in its tracks, either temporarily or permanently, so you are able to save your house.
