How can I Avoid Foreclosure?
Are you having trouble keeping up with your mortgage payments?
Have you received a notice from your lender asking you to contact them?
The Department of Housing and Urban Development, or HUD, has 10 tips you can follow to avoid losing your house:
- Don’t ignore the problem: The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
- Contact your lender as soon as you realize that you have a problem: Lenders do not want your house. They have options to help borrowers through difficult financial times.
- Open and respond to all mail from your lender: Your failure to open the mail will not be an excuse in foreclosure court.
- Know your mortgage rights: Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws in your state.
- Understand foreclosure prevention options: Valuable information about foreclosure prevention options can be found on the Internet at http://www.hud.gov.
- Contact a HUD-approved housing counselor: The U.S. Department of Housing and Urban Development funds free or low-cost housing counseling nationwide. Find a HUD-approved housing counselor near by calling 800-569-4287.
- Prioritize your spending: After health care, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses — cable TV, memberships, entertainment — that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.
- Use your assets: Do you have assets — a second car, jewelry, a whole life insurance policy — that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
- Avoid foreclosure prevention companies: You don’t need to pay fees for foreclosure prevention help — use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. They will charge you a fee (often two or three month’s mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.
- Don’t lose your house to foreclosure recovery scams: If any firm claims it can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home. Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD-approved housing counselor.
Source: Department of Housing and Urban Development
How WE help you Avoid Foreclosure.
We have a variety of different means.Â We do not charge you any fees (see #9) before trying to help you.Â We are not a foreclosure prevention company.Â We buy houses .
If you wish to sell your home, we have different ways of purchasing it.Â No closing costs or fees to you.Â We use attorneys as a form of giving you protection, and to make sure that we do our business right.