Today many Americans find themselves living not pay check to pay check but rather bill to bill. There seems to be an ever-present, underlying fear of foreclosure. There are a few steps the Federal Housing Authority (FHA) and the US Department of Housing and Urban Development (HUD) recommends all homeowners take to avoid foreclosure.
Often when we are stressed we try to put the stressor out of our minds; we ignore the problem. When it comes to your mortgage this is not a good choice. In fact, the further behind you become the more likely it is that you will lose your house.
Lenders often have programs in place to help borrowers in this situation. They do not want you to lose your house. In fact it is to their benefit if you keep it. If you feel you are not able to make a payment, contact your lender immediately to discuss mortgage foreclosure prevention. This will let your lender know your willingness to work this through with them. HUD also offers free advice with Housing counselors. These are approved representatives throughout the country who can help you with everything from knowing the laws of your state to helping you negotiate with your lender.
Here again, ignoring the problem will not make it go away. Promptly open all mail from your lender. Likely, they are trying to contact about mortgage foreclosure options. Avoiding the mail may make matters worse.
Learning about time frames and mortgage foreclosure laws in your state will arm you with information should the need arise. Read your mortgage documents to learn what terms were agreed to regarding foreclosure. Remember, knowledge is power.
Keeping your house/paying your mortgage should be among your first priorities (second only to health care). Look for expenses that you can eliminate (temporarily or permanently). Movies, memberships and cable TV are all disposable. You may even find eliminating these things is beneficial. I needed to cancel my cable TV to help keep my home. Now, my children all read above grade level as a direct result of not having television. Although it may sometimes be a difficult choice, you should always choose to pay your mortgage before credit card bills.
Do you have assets you can sell to protect your home. Perhaps you can sell your car, or jewelry. Even if the sale of these items doesn’t cover a mortgage payment, the attempts show your lender your commitment to saving your home. Getting a second job will also be seen as a show of good faith to your lender.
Foreclosure prevention companies require you to pay a fee for their help. This is money that could be spent on your mortgage. Free help is available from your lender or from a HUD counselor. If someone offers to help you stop a foreclosure immediately and asks you to sign a document, be wary. This is most likely a scam and you may be signing over the deed to your home.