First Steps to Preventing a Foreclosure

Home ownership is the American Dream. Facing foreclosure can be a homeowner’s worst nightmare. There are remedies that a homeowner can take, to prevent a foreclosure. There are programs and counseling available to help those who want to hold onto their homes and their dreams!

You are not alone. According to the FDIC, every three months 250,000 families enter into foreclosure. If you miss a mortgage payment, the first line of foreclosure defense is to talk to your lender. Economic times are tough, and unemployment is at an all time high. Banks and lenders hear these stories every day, and some are willing to help.

The best thing is to give them a call and see if you can negotiate some type of loan modification. Some lenders will take the missed mortgage payment and add it to the balance of your loan, to give the homeowner some breathing room. This could be all you need if you are facing a temporary situation, such as short term job loss.

If your lender gives you a hard time, HUD, also known as the US Dept.of Housing & Urban Development, has some suggestions. It depends on the type of loan you have, so you can choose the best road to take to avoid a foreclosure. You can see that information here: Working With Lenders

There are counseling agencies that are out there to help people prevent a foreclosure. A good starting point is the HUD website, that has a state by state guide to qualified counselors in your area. Click here for more info: HUD Website

Work as best you can with your lender, use counseling agencies and being proactive to preserve your best interests, are good starts to preventing foreclosure. Educating yourself and being diligent can go a long way.

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