Steps to Foreclosure

Foreclosure 

With the exception of illness or death nothing is more devastating to a family or any individual than losing their home. To lose it through foreclosure is not only devastating but embarrassing and demeaning. These are some strategies to avoid foreclosure:

1. Be proactive about the problem when the first warning signs appear. Not only does this reduce the stress of not knowing what is going to happen but it makes it easier for creditors to work out a plan.

2. Contact your lender when you become aware that you have a problem. The last thing that a lender wants is to foreclose on the property. Financial institutions lose a significant amount a money by foreclosing on a property. It is important to be honest with your discussions and be prepared to discuss the reasons for your problems.

3. Read the mail. Not knowing does not solve the problem, it just delays the final result and increases the pain. By not reading the mail a person avoids the opportunity to get help before it is too late.

4. Contact a HUD approved housing counselor or call a REALTOR for advice. Call 800-569-4287 to find a nearby counselor, or go to www.hud.gov.

5. Prioritize your spending by paying for the necessities of life first. Always pay the house payment and health insurance first.

6. Look for ways to generate cash. Sell those items that have value but are not used or needed, or seek a part time job to get through the crisis. Not only does this reduce the emotional and financial stress but it provides evidence to the lender that the borrower is proactively seeking a way to remedy a bad situation.

7. Don't get scammed by a private "foreclosure prevention specialist," instead go to www.hud.gov. to obtain valid information about foreclosure prevention.

7. Make an appointment with a REALTOR to discuss the problem and to get their advice.