Tips For Avoiding Foreclosure
Are you having trouble keeping up with your mortgage payments? Have you
received a notice from your lender asking you to contact them?
Don't ignore the letters from your lender, contact your lender immediately!
Contact a HUD-approved Housing Counseling Agency
Toll FREE (800) 569-4287
If you are unable to make your mortgage payment:
1. 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.
2. 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.
3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention
options that can help you weather financial problems. Later mail may include
important notice of pending legal action. Your failure to open the mail will not be an
excuse in foreclosure court.
4. 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 and timeframes in
your state (as every state is different) by contacting the State Government Housing
Office.
5. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation)
options can be found on the internet at www.fha.gov/foreclosure/index.cfm. 6. Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very
low cost housing counseling nationwide. Housing counselors can help you
understand the law and your options, organize your finances and represent you in
negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287.
7. Prioritize your spending.
After healthcare, 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.
8. 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.
9. 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. While these may be legitimate businesses, they will
charge you a hefty 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.
10. Don't lose your house to foreclosure recovery scams!
If any firm claims they 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. Visit www.ocalaflhome.com for all your Ocala Fl Real Estate needs.
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