[?] Subscribe To This Site

XML RSS
follow us in feedly
Add to My Yahoo!
Add to My MSN
Subscribe with Bloglines

 

Picture of Foreclosure Survival Guide ebook

Email

Name

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you Stopping Your Foreclosure Newsletter.

JustAnswer.com

How To Get Help When Facing Foreclosure

Foreclosure is the way that lenders attempt to get back some of the money that they are owed. The lender takes a home back when the homeowners fail to make their monthly payments.

In most cases, several payments must be past due for the mortgage company to even begin to think about a foreclosure, but there are always exceptions to the rule.

Because there are so many scam artists out there, mortgage companies will sometimes begin action after one payment is missed if the loan is brand new and due for its first payment.

These accounts would be considered first payment defaults. Not making the first payment of a mortgage is a sign to the bank that something is drastically wrong.

It is important to remember though that foreclosure is a process so do not get so scared from the letter that you pack up right away and leave the home. Even if you have no intentions on getting the home out of the foreclosure, there is no reason to leave until you absolutely have to. The time that you must leave is when the home is auctioned off and there are new owners serving you an eviction notice.

Even after the home goes to auction, you may have legal rights to stay in the property if your state gives a redemption period. The redemption period is a set amount of time after the home goes to auction that the homeowner is allowed to payoff the loan completely and regains legal ownership of the home.

First 3 Steps To Take When Foreclosure Is Imminent

If you have not already begun to look into various options, as soon as you receive the foreclosure letter in the mail, you need to start making phone calls.

The first place you need to call is that of the mortgage company. You will want to discuss with them what your total amount due is, including and possibly attorney fees and costs.

You will also need to make sure that you are being told of the timeline you have to get things resolved. Even if the exact auction date is not yet set, the mortgage company should be able to give you a rough estimate on how long foreclosures usually take in your particular state.

Next you want to make sure that you are looking over all of your income that is coming in. Forget about the other bills and obligations as you want to save your home. Figure out how much money you can come up with in order to pay the amount past due or to at least start a repayment plan.

Borrow money from friends and family. You could ever check to see if you could get an advance on your pay from your employer.

The third thing you want to do is to check with your mortgage company to see what options they may have available for you. They have the say so to set you up on repayment plans or to give you a loan modification and simply bring you current. There will be information that you are going to need to send them but as long as you are working with them you should be fine.

3 Steps To Take When An Auction Date Is Set

If the auction date is set then your time is running up. Now is the time to act fast. It is important to make sure that you are continuing to keep in touch with your mortgage company while they work on options for you. This is the first thing that you will want to do.

The second thing you may want to do is to consult an attorney to make sure that you are completely aware of all of your legal rights. There is a possibility of a bankruptcy giving you enough time to get things situated.

The third thing you want to do is to prepare for the worst. Start to figure out what you are going to do and where you will go should that auction date come and go without you being able to resolve the situation.

How To Get Ready

Whether you are looking at getting help from the mortgage company, applying for a bankruptcy, or looking for a new place to live there are certain things that you are going to need to have in order.

You need to have proof of all of your expenses and all of the income that is coming into the household. It is also a good idea to make sure that you have your previous years income tax return handy.

In the end you will find that the more proactive you are, the more options there will be for you. No one wants to end up at the end of his or her battle with a foreclosure without a home. Do what it takes but always prepare for the worst so that you are not left without a plan.