Do It Yourself Legal Forms
FSBO Home Sale Software
Get help preparing legal forms.
Selling Your Home Alone
Do It Yourself Bankruptcy Software
Today, a large number of homeowners are facing foreclosure and, as you
can imagine, many are unsure of what steps they should take. Anyone facing foreclosure should make efforts to become well
educated on the subject.
For example, homeowners should, at the very least, familiarize
themselves with their local and state foreclosure laws, their rights as
homeowners, and so forth.
Having said that, it is important to remember that foreclosures are preventable and knowing how to avoid foreclosure is of the utmost importance for the homeowner in peril of losing his or her home.
Steps YOU Can Take to Prevent Foreclosure
I am sure you understand that the easiest way to avoid foreclosure is simply to make all your monthly mortgage payments and do so on time.
If you cannot keep your payments up-to-date, however, some financial lenders will prepare to foreclose after only one or two missed payments. While you
will not be removed from your home right away, just know that the
process is easy to get started, so never fall behind in your payments. It is important that you understand your lender's rules and
expectations on this.
Obviously, simply telling you that you should make on time monthly
mortgage payments doesn't mean that you will or that you even
If you see financial trouble in your near future, such as being laid
off from work or being out of work due to an injury, immediately speak
to your lender. If the lender knows that your financial
troubles are only temporary and if you have a history of on time
payments in the past, they may be willing to work with you. This may involve smaller payments for the time being, or whatever else
can be worked out.
Even if you are not able to get your financial lender to lower your
mortgage payments, even just temporarily, there are still other ways
that you can avoid foreclosure.
First and foremost, you should never, under any circumstances, ignore
warnings and phone calls from your lender. Even if you do not
intend, or simply see no way, to keep your home, it is
important to be in constant contact with your mortgage
holder. At the very least, you will need to know what happens
next and when you should leave the property.
Don't Hold Back
If you have any kind of assets...jewelry, a second car or other
belongings that can be sold, you are encouraged to do so. This may give you the money needed to get your mortgage up-to-date and
in good standing. Even if you cannt bring it to one hundred
percent good standing, it shows your financial lender that you are
trying your hardest to keep your home.
As easy as selling some of your belongings sounds, you should know that
acquiring a second
job is often your best chance of success. While
it may be a shock to your pride, I know a banker who
kept HIS home by delivering pizzas.
Don't knock it, by the way. A few years back, during a desparate time, I delivered pizzas and made almost $20 an hour.
Increasing your income and creating some sort of temporary cash flow
are just two ways to avoid foreclosure and keep your mortgage payments
up-to-date. With that in mind, many homeowners facing
foreclosure are surprised to learn just how much money they can save
up, or at least hold on to, simply by prioritizing their
spending. Due the recent rise in costs of gasoline, food, and
entertainment, consumers who never had to worry about using grocery coupons or having a
monthly family budget need them
now. All homeowners, especially those facing foreclosure are
encouraged to track their spending habits and eliminate unnecessary
purchase. The money saved should be applied towards mortgage
Another easy way to reduce the risk of foreclosure is to seek
professional assistance when needed. In some states, you can
find local governments and even mortgage lenders who occasionally
provide free foreclosure assistance to homeowners in need. As
soon as you suspect that foreclosure may be an issue, you should meet
with an attorney specializing in foreclosures or a HUD (United States
Department of Housing and Urban Development) approved
counselor. These are individuals who can advise you of your
rights, help you understand your state’s foreclosure laws, as
well as help you develop a plan of action.
There will be a mental aspect as well. Homeowners facing
foreclosure often report an overwhelming feeling that just cannot and
will not go away. This is the time to drop any macho, or
fe-macho, thoughts and seek professional help.
Finally, the United States Department of Housing and Urban Development
(HUD) advises homeowners to not fall for foreclosure scams.
These scams are often referred to as foreclosure recovery
scams. Never believe the claim of an individual or company
who says they can stop foreclosure proceedings with one
signature. If you are not careful, you could lose your home
anyway. You could become a renter who can’t afford
the new rent. Never sign any documents pertaining to your
home without first having a trusted and reputable attorney review them.
For Sale by Owner (FSBO) Software