What to do if Facing Foreclosure
Here are things you should do if you are facing foreclosure.
First of all Foreclosure happens to people from all walks of life. People fall behind on their mortgage payments, can’t keep up them and end up losing their homes. Other than facing a death in the family or a serious illness going through a foreclosure is about as traumatic as it can get. But going into foreclosure does not have to be the end of the world. It also doesn’t have to mean you will lose your home.
Here are a few common questions and answers about foreclosure:
Q: What is foreclosure?
A: If you fall behind on your payments and don’t appear to be catching up, your lender can file a notice of foreclosure. This signifies an intention to begin a process to take over your property if you don’t straighten out your payments.
Q: What should I do?
A: First and foremost, don’t ignore the problem and hope it will go away. If you’re having trouble meeting your payments, contact your lender and explain your situation. It might be possible to work something out, especially if the problem is only temporary. Second, stay in your home. If you leave, you surrender some legal protections. Third, contact a credit counselor and see if any advice might be applicable in your case.
Q: I’m behind and can’t catch up. What can I do?
A: If your situation has changed for the worse, you may be able to get help from your lender in the form of a temporary reduction of payments. Be prepared to prove you can handle the new plan. You might be able to refinance and/or extend your mortgage, bringing your payments to a more manageable level. This is easier if you have equity. You might have time to avoid final foreclosure by selling your home, hopefully for at least as much as you owe on it. As a last resort, you may be able to “give back” your home to the lender. You’ll lose your home, but this won’t damage your credit rating as much as a foreclosure.
Q: Is there anything else I should know?
A: Absolutely. To the unscrupulous, you’re as tempting a target as someone bleeding in an area where sharks are swimming. All sorts of scam artists may contact you, whether they’re pretending to be “buyers” offering to help you or phony credit counseling agencies who will charge you hundreds of dollars to do things you could do for yourself.
Q: How can I avoid being “taken?”
A: It almost goes without saying that all promises made to you should be in writing, and you shouldn’t sign any papers you don’t understand. Beware of any deals that leave you on the hook for the debt. Check with the Better Business Bureau, the Consumer Fraud Unit or the State Real Estate Commission if you have any doubts at all.
Q: So can you sum it up?
A: More than anything else, you don’t want to lose your home and damage your credit. So call or write your lender and keep in touch, stay in your home and give full cooperation to the folks trying to help you.
Written by Michael Rappaport at Mortgagefraudqc.com
Mark V. Schwartz is a full time Real Estate Investor and Internet Entrepreneur, and founder of The Internet Real Estate Center and MS Buys Houses Internet, based companies that shows people how to profit using the Internet and eBay Real Estate as a major component of their Real Estate marketing strategy. Visit his blog at The Internet Real Estate Center – Blog
