With the economy in the biggest recession since the Great Depression in the 1930s, and jobless rates spiking over 10%, house foreclosures are ranking up there as a big problem for United States citizens.
Since the housing bubble burst in early 2006, the number of houses in foreclosure has been on the rise. Foreclosed houses were up a record 81% in 2008. With things looking grim there, even if you are in financial disaster, there is still hope to save your home.
The biggest thing to remember is NEVER ignore the problem. If you deliberately miss payments, you will fall way behind. If you fall severely behind, it will be very difficult to reinstate your loan. It will then become very possible you will lose your house and it will become one of the statistical ‘foreclosed houses for sale’.
Tips On Saving Your Home
Remember to call the lender as soon as you are having difficulty with payments. They do not want your home. Most of the time they are able to help make some modifications to your loan to help you through these difficult times.
Respond to all letters from your lender. They contain valuable information regarding foreclosure prevention and ways to overcome financial problems. Later mailings will discuss further legal action. Failure to open these mailings will not be excusable in court. With the majority of banks having many foreclosures on their books, they do not want to add yours to this list.
Learn all you can about bank home foreclosure law. Review your loan documents. Every state has different timelines in which they process houses in foreclosure.
Contact the state Government Housing Office for more information. Talk with a HUD-approved housing counsellor. They offer free or extremely low counselling services. They can assist you in understanding your rights and options, as well as help you in negotiate with your lender.
Cutting Back On Your Expenses
One other thing you have to do is evaluate your expenses and make a list from most important to least important. Health care and your mortgage should be on top. Trim off extra things like TV, gym memberships, and other entertainment.
Delay payments on credits cards until you have fulfilled your prioritized obligations. Sell off extra assets like a car or jewelry for extra cash. Have someone get a second job if possible. These will show your lender you are serious in keeping your home.
Foreclosure Scams
Look out for foreclosure prevention scams. Many scams will trick you into signing a document which they say will allow them to speak on your behalf. What this really does is signs over the property title to them! This essentially makes you a renter in your own home! Make sure you receive all legal advice from an attorney or HUD-approved housing counsellor.
With so many foreclosed houses for sale and houses in foreclosure, it is essential that you do everything you can to save the house you live in. Foreclosures will damage your credit for a very long time and make it hard to get loans and credit in the future.
By prioritizing your expenses and working with your home lender, avoiding house foreclosure is definitely in reach.
