- Don't ignore the problem and hope it will go away. The sooner you act, the easier it is to get help.
- Contact your lender at the earliest indication of a problem . Lenders are required to file a Notice of Default if necessary in order to protect their own interests, however the last thing a lender wants is to take foreclose on your home. Open all mail sent from your lender. Ignoring the problem will not make it go and lenders often provide helpful information that may provide a few options during the early phases of delinquent payments. Later in the process, important information regarding legal action and responsibilities may be sent by your lender.
- Read through your loan contract and contact your State Government Housing Office. Be well versed on what your lender may do if you can't make payments and the time frames and laws in your state.
- Understand Foreclosure Prevention Options- A number of loss mitigation options are available including thatcould help you get current.
- Contact a non-profit housing counselor- Counselors can help you with the laws and your options as well as organize your finances and represent you in negotiations. These counselors are available nationwide and are funded by HUD.
- Prioritize your spending- Next to your health, keeping your house should be your number one priority. Review your spending to see what you can remove to make more room in your budget for your house payment. It is a good idea to contact the lender for your unsecured debt as well, as they may offer some options to help you manage your payments.
- Utilize your assets- Review your assets for anything that you may be able to sell for cash to make your payment or reinstate your loan. This can include a second car, jewelry, electronics or a whole life insurance policy. Also, if possible, attempt to take on a second job. What is important in these situations is that you have demonstrated to your lender that you are attempting to reconcile your financial obligations. Even though the financial gain may not be enough to completely reconcile the account, the display of effort is just as important.
- Avoid foreclosure prevention companies- With a number of non-profit agencies provided by the government, it is a good idea to avoid using for-profit agencies.
- Be conscience of foreclosure recovery scams.
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