When to Accept Foreclosure as a Fact
At any give time, millions of homeowners are in danger of losing their homes.
They are at risk of foreclosure by their lender for failure to pay their mortgage.
There can be many factors which bring homeowners to the brink of foreclosure. There is unemployment, illness, unexpected expenses, poor management of personal finances...any one of dozens of situations. With today's unsteady economy, a high unemployment rate, a relatively poor job outlook, and rising costs of essentials, such as fuel and food, many homeowners are finding it more and more difficult to keep their mortgage payments up to day.
If you find yourself caught up in a situation like that, you are almost certainly going to be unsure as to what you should do.
There a lot of things going through your mind once you find yourself in a situation which may result in foreclosure.
You wonder if there are ways to avoid foreclosure.
You wonder if maybe bankruptcy is an option.
However, no matter what solutions you try to come up with, as the possibility of foreclosure draws nearer, you begin to wonder what's the magic moment that all the fighting has to end, and you just have to accept your fate.
Of course, one obvious fact is that, no homeowner should be surprised by a foreclosure.
The lender will try all sorts of ways to contact you ahead of any "drop dead" date, and, if you are not aware that foreclosure is imminent, then you have a serious personal problem. Of course, if your contact data is not up to date, the mortgage holder may have real trouble trying to contact you. However, this should never happen to a responsible homeowner.
Anyway, long before the final phases of a foreclosure process begins you will have plenty of opportunity to act to prevent it.
If your situation is actually temporary, and you communicate honestly and openly with your lender, they should be willing to work with you. Even if ultimately you have to accept foreclosure as an irrefutable fact, but, you have a reputable lender, they will, at the very least, keep you informed and advised about the process and the steps that are going to occur. They will be open with you if you will be open with them.
At the very least, the law generally requires them to keep you informed anyway.
If you act as soon as you know you are in trouble, and, if you try to work with your lender, there is a good chance that you will never reach the point of having to accept foreclosure. They don't want your house. It costs them money to sell it, and, they will probably take some sort of loss if they do foreclose. Most lenders are motivated to keep good homeowners in their homes.
Once all the options are exhausted, and, they may vary from state to state, however, your home will go up for sale. Still, the lender should be in communication with you, and, hopefully, you with them. This can prevent you being taken by surprise or having to make last minute decisions about getting your property out and finding another place to live for you and your family.
Some may advise you to file bankruptcy, or some may advise you to "stay and fight". Well, if you have something to fight with, or about, that's fine. However, if you have not been making payments for a lengthy period of time, or, not making payments which satisfy your lender, you may not have a leg to stand on. At that point, you have to accept forclosure as a fact.
Of course, while friends and family may offer all kinds of advice, you really need to get guidance from professionals who know about this sort of thing. If you are facing foreclosure, you probably cannot afford an attorney or accountant, but, HUD and local agencies are often able to provide at least some guidance as to options. Even your lender will often be willing to advise you to some extent. Remember, the lender wants to keep an honest, reliable person in the house. They don't want to have to foreclose on a home, and then go through the expense of trying to unload it on another buyer.
Be advised that, in some states at least, there IS a "point of no return" in the foreclosure proceedings. Once that point is reached, there is nothing you can do but accept foreclosure. This is why it is crucial to stay in contact with your lender. If you cannot delay foreclosure by making acceptable payments, they are the only ones who can put the process on hold.
By the way, whatever YOUR particular reasons for being on the brink of foreclosure, do not be embarrassed to call your lender and explain all details of your situation. They have probably heard worse, and, I say it again, they WANT to keep you in your home if at all possible.
On the other hand, they ARE in business to make a profit, and, if they reach the point where they are as certain as they can be that you are NOT going to pay them, they will have to start the process, and you will HAVE to accept foreclosure as a fact.
ABOUT THE AUTHOR
Donovan Baldwin is a University of West Florida alumnus, BA Accounting 1973, and a freelance writer. He is retired from the U.S. Army after 21 years of service. He has also been a program accountant and fiscal consultant for the Florida State Department of Education, and, has been the business manager of a community mental health center, in addition to other managerial and supervisory positions.
In addition to articles such as this one, he has been writing poetry for over 40 years, having had several poems published in literary magazines and periodicals. He has published some of his poetry online at ravensong.4t.com.
When to Accept Foreclosure as a Fact
Page Updated 1:54 PM Sunday 8/30/2015