How to Avoid Foreclosure
Learn about the process of foreclosure., Answer calls or letters from your lender., Take action as soon as possible., Stay in your home until ordered to move out., Have all your financial information organized and close at hand., Learn about...
Step-by-Step Guide
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Step 1: Learn about the process of foreclosure.
The foreclosure process varies from state to state, so click here to investigate the laws in your particular state.
According to the US Department of Housing and Urban Development, however, there is a general timeline of the process that you can look to as a guideline.It is important to keep in contact with your lender during every stage.
This will increase the chances you can work out some kind of arrangement.
Usually when you fall 3 months behind on your payments, your lender will contact you and inform you that you are delinquent.
They will usually give you 30 days to bring your loan current.
If you fail to do so, they may begin foreclosure proceedings.
If possible, try to make arrangements with your lender at this point, since proceedings haven't begun yet.
After those 30 days are up, the lender will contact attorneys and begin the foreclosure proceedings.
You will be notified when this happens, and will probably also be charged attorney fees in addition to your debt.
The lender's attorney will schedule a date of sale.
This means that your lender is putting the house back on the market to resell.
You can receive word of this a number of ways, including an official letter or a notice taped to your door.
The date will vary, but is often 2-3 months from the day you receive the notice.
The date of sale is not a move out date.
Your lender will notify you when you're expected to move out.
You still have until the date of sale to pay off the debt or make some other type of arrangement. -
Step 2: Answer calls or letters from your lender.
As you can see, you'll receive several notices from your lender before the foreclosure process starts.
Some people choose to avoid letters or calls from their lenders if they're having trouble making payments.
This is a mistake.
In order to avoid foreclosure, you'll have to stay in contact with your lender., Don't wait until you are very far behind on your payments to address the problem.
Ideally, you should contact your lender before you've missed any payments if you're afraid you might fall behind.
The earlier you act, the better your chances of keeping your home., If you receive a notice that the foreclosure process is starting, you still have options.
If you abandon the property, you may no longer qualify for certain assistance programs that can help you keep your home., Whether you negotiate with your lender, contact a lawyer, or seek government aid, all will want to see your finances.
Having all of this information easily accessible you will make negotiations go by smoother and faster., People facing foreclosure are understandably upset, and may jump on any opportunity they think will help.
Con artists prey upon this mentality and can further victimize you.
There are a number of different ways they can do this, so be on the lookout.Lease-back programs.
This involves you transferring the title of your home to a lender who allows you to stay in the house as a renter.
Con artists often claim that this is a temporary arrangement, but if you sign up for this you've effectively surrendered your home and will likely not get it back.
False intermediaries.
Sometimes scammers offer to negotiate with your lender to modify your loan.
They will often charge high fees for their "services," and by the time you realize that they aren't negotiating with your lender, you've already surrendered a lot of money.
Secret law claims.
Some scammers pretend to be legal experts who know of a secret or little-known law that states you aren't required to pay your mortgage.
Again, they will often charge high fees for their "services."
It is often difficult for someone without legal training to understand the terminology and jargon in contracts and documents.
Scammers often word things in a confusing way.
Some people may even unknowingly sign away their houses because they didn't properly understand the document.
If you are unsure of anything in a document you've been presented, consult a licensed real estate agent or lawyer. -
Step 3: Take action as soon as possible.
-
Step 4: Stay in your home until ordered to move out.
-
Step 5: Have all your financial information organized and close at hand.
-
Step 6: Learn about different types of scams.
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Step 7: Consult an expert before signing any documents you don't fully understand.
Detailed Guide
The foreclosure process varies from state to state, so click here to investigate the laws in your particular state.
According to the US Department of Housing and Urban Development, however, there is a general timeline of the process that you can look to as a guideline.It is important to keep in contact with your lender during every stage.
This will increase the chances you can work out some kind of arrangement.
Usually when you fall 3 months behind on your payments, your lender will contact you and inform you that you are delinquent.
They will usually give you 30 days to bring your loan current.
If you fail to do so, they may begin foreclosure proceedings.
If possible, try to make arrangements with your lender at this point, since proceedings haven't begun yet.
After those 30 days are up, the lender will contact attorneys and begin the foreclosure proceedings.
You will be notified when this happens, and will probably also be charged attorney fees in addition to your debt.
The lender's attorney will schedule a date of sale.
This means that your lender is putting the house back on the market to resell.
You can receive word of this a number of ways, including an official letter or a notice taped to your door.
The date will vary, but is often 2-3 months from the day you receive the notice.
The date of sale is not a move out date.
Your lender will notify you when you're expected to move out.
You still have until the date of sale to pay off the debt or make some other type of arrangement.
As you can see, you'll receive several notices from your lender before the foreclosure process starts.
Some people choose to avoid letters or calls from their lenders if they're having trouble making payments.
This is a mistake.
In order to avoid foreclosure, you'll have to stay in contact with your lender., Don't wait until you are very far behind on your payments to address the problem.
Ideally, you should contact your lender before you've missed any payments if you're afraid you might fall behind.
The earlier you act, the better your chances of keeping your home., If you receive a notice that the foreclosure process is starting, you still have options.
If you abandon the property, you may no longer qualify for certain assistance programs that can help you keep your home., Whether you negotiate with your lender, contact a lawyer, or seek government aid, all will want to see your finances.
Having all of this information easily accessible you will make negotiations go by smoother and faster., People facing foreclosure are understandably upset, and may jump on any opportunity they think will help.
Con artists prey upon this mentality and can further victimize you.
There are a number of different ways they can do this, so be on the lookout.Lease-back programs.
This involves you transferring the title of your home to a lender who allows you to stay in the house as a renter.
Con artists often claim that this is a temporary arrangement, but if you sign up for this you've effectively surrendered your home and will likely not get it back.
False intermediaries.
Sometimes scammers offer to negotiate with your lender to modify your loan.
They will often charge high fees for their "services," and by the time you realize that they aren't negotiating with your lender, you've already surrendered a lot of money.
Secret law claims.
Some scammers pretend to be legal experts who know of a secret or little-known law that states you aren't required to pay your mortgage.
Again, they will often charge high fees for their "services."
It is often difficult for someone without legal training to understand the terminology and jargon in contracts and documents.
Scammers often word things in a confusing way.
Some people may even unknowingly sign away their houses because they didn't properly understand the document.
If you are unsure of anything in a document you've been presented, consult a licensed real estate agent or lawyer.
About the Author
Ruth Ryan
Dedicated to helping readers learn new skills in cooking and beyond.
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