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Picture of Foreclosure Survival Guide ebook




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Ways to Avoid Foreclosure

Many people feel as though there was really nothing that they could do about the foreclosure of their home. While there are some extreme cases out there where a homeowner would be correct in saying that, most of the time the foreclosure could have been prevented. Of course a foreclosure can be prevented if the payments are never missed but things do happen. Accidents happen and unexpected events take place. Sometimes, there is nothing you can do to avoid missing a payment or paying slightly late.

But just because something came up, does not mean that you have to allow the situation to get out of hand and land you in foreclosure. Once you realize that you are in some trouble, make sure that you are calling the mortgage company right away. Explain to them of the reason why you were unable to make your payment and see if there are any programs available to help get you back on track.

If a repayment plan is offered you will want to make sure that you are taking it. While it would be nice to say that you will be able to double, or even triple, up on payments the following month, that is more in likely not something that you can afford. And if you do manage it you probably have to skip out on paying all of your other bills to do it. The following month you will have to catch all of those up, which might send you running behind on your mortgage again. It is a vicious cycle that many people find themselves in the middle of.

Things To Keep Up On

A reason some people fall behind on their payments is because of an increase in the monthly payment amount. This is sometimes due to forced placed insurance. If your homeowners insurance is not currently escrowed through your mortgage company, it is your responsibility to make sure that it is kept up to date. And even if you have it up to date, it is up to you to make sure that your mortgage company always have proof of that. When the mortgage company does not have proof, they have the right to force place their own insurance, which dramatically increases the mortgage payment. Some people have seen their payments almost double in price.

Is Foreclosure Imminent?

Many people start to wonder if it is already too late by the time they receive notification of foreclosure action through the mail. This first notice generally comes through the regular postal mail and then through certified mail. It is an official notice and it is something to take seriously but you still have time. Foreclosure is a process that takes time. There are attorneys involved and a lot of paperwork and legal loops to jump through in order for a foreclosure action to be completed.

If you have not yet passed the date of an auction, then you still have time. It is not all the time in the world but you still have a little time to work with. Until the date of an auction, you have the time to bring the account current, work out a repayment plan, sell your home, or refinance the mortgage.

Steps To Take If You're Too Late

Maybe you were away on business out of the country and you were unaware that your business manager was not making the payments. Or maybe you were hospitalized and just came home to find an eviction notice. In either case, you may be too late to save your home. Some states do have the option of a redemption period but you have to have enough money to completely pay off the loan in full.

Start talking to companies about getting a loan. If you have another property that has equity in it you could mortgage that out if there is enough money there to pay off your house. Friends and family may be able to step in and help as well. For those that find themselves stuck with no way of getting their home back from the foreclosure, there is one thing that you can count on. Foreclosures are no longer stopping people from obtaining new mortgages for new homes. The hit to your credit may affect your interest rate, but many people are finding that they can get another mortgage within a year or two after the foreclosure of a home.

In conclusion, it is important to make sure that you are taking every action possible in order to prevent a foreclosure. Borrow money, work overtime, and ask your mortgage company for any assistance they may be able to give you. But if it is too late and your home goes to auction, know that it is not the end of the world and you can soon enough find yourself in another home.