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Typical Signs That Foreclosure Is Coming To You


Even though some people would like to think once they own a home no one is going to be able to take that from them, that is far from the truth.

A home can be taken away for many reasons but the main thing that causes someone to lose their home is that of a mortgage foreclosure. We all face troubles in fact but when things completely out of hand and several payments are missed foreclosure is sure enough on the way.

Foreclosure is the legal process that the lender takes in order to claim the property as their own so that they may sell it at auction. The money at auction is used as payment for the money that you owe on the mortgage.

Sometimes the lender is able to sell the home at auction for more then what is owed on it and in that case, the mortgage company usually gets to keep the difference. Other times, the home is sold for less then what it owed which will leave a balance still due.

Foreclosure Statistics And History

It seems that the foreclosures may continue to get a little worse before they get better. Throughout history, foreclosures have been taking place since lenders became a part of the purchasing process of a home.

There have been some ups and downs but nothing like the past year. As of data collected March 2009, foreclosures are up 46% from the pervious year and they are up 17% from just one-month prior.

While this may be the worst it has been in an extremely long time, things may have to get a little worse before they get better. Many people have compared this time to the Great Depression, as people simply do not have enough money to survive.

Is it really that bad? Maybe or maybe people are simply spending more then they should be which is causing a snowball effect everywhere as they cannot truly afford all of the things they want.

Signs Of An Imminent Foreclosure

You are probably used to the collection calls as you started receiving them as soon as you were a couple of days late with the first mortgage payment you missed. Plus, if you are not paying your mortgage then you are probably not paying other things as well, which means even more collection calls.

If you are suddenly noticing an increased urgency in the voice of the collection agent from the mortgage company, it is a clear sign that something is about to happen.

It is against the law to talk about possible foreclosure action on your house on your answering machine or when leaving a message with someone so all they can do is try to stress more urgency in their voice.

If you hear that, you may want to stop and call them back as your home may very well depend on it. But that is not the only sign you should be watching out for.

You will want to make sure that you are opening all of your mail that is coming from the mortgage company. If you find that the mortgage company has sent you a packet to fill out for possible options to save your home it should be a good indication that they feel that you are well on your way to a foreclosure if you do not act fast. If you are also finding that a couple of different departments are calling you from the mortgage company that is another clear sign that you are in trouble.

Along with what the mortgage company is doing, there are clear signs in your personal situation that can be an indication that you are on your way to being foreclosed on. If you have not yet recovered from the situation that caused you to fall behind or you are paying other bills instead of your mortgage, then you are in trouble.

If you simply do not want to answer phone calls or open letters from the mortgage company then you may very well land in foreclosure before you know it as ignoring the situation certainly doesn't make it go away.

Take Action Before The Foreclosure Letter Comes


Many people tend to wait until they actually receive a letter in the mail stating that there are foreclosure actions taking place. Even though there may still be plenty of time to take action and save the home, why wait? If you know that you are not going to be able to make your payments for a couple of months, for whatever reason, it is time to start making phone calls.

The first place you will want to call is the mortgage company. Explain your situation to them. If you know that you will be receiving a large chunk of money to bring the account current on a date that is about a week after they plan on sending your account to the attorney's, they could possibly hold off on that action to give you the time.

This is a case-by-case thing and it needs manager approval but it can happen. It will not happen though if you are not keeping open communication lines with your mortgage company.

By taking steps to solve the situation before the letter comes in the mail you could very well save yourself more then just frustration. You could very well find that you have saved yourself a couple hundred dollars or even a thousand dollars by making arrangements before the foreclosure letter comes.

In summary, it is important to make sure that you are not hiding from the situation, as foreclosure is extremely serious. It is something that you can dig your way out of though so make sure that you are being proactive and making some phone calls. When it is all said and done, the outcome that appears will be the result of your actions or the lack of action from you.