For many of us, home is a place that we have worked long and hard to cultivate. It’s a place that holds many memories, a place that is safe. No one ever wishes to have their home foreclosed upon. However, if you fail to make your mortgage payments on time, foreclosure is a very real possibility.
Facing foreclosure can be a stressful and unpredictable time. That’s why it’s good to know that before you reach that point, there are several proactive steps that you can take to prevent foreclosure. Below, you will find some of the most important:
- Face the problem
The first, possibly most daunting, task is to face the reality of the problem head on. Don’t ignore it: The further behind in your payments you fall, the closer you will come to losing your house.
- Contact your lender
Get in contact with your lender as soon as you can to discuss your options. It is not in your lender’s best interests to take your house. They have options to help borrowers who face foreclosure.
- Don’t ignore the mail
You may feel overwhelmed by the mail you receive, but don’t be tempted to ignore it. Open and respond to all of your mail. It could include good advice about foreclosure prevention options or important information about legal action.
- Understand your mortgage
Reread your loan documents to understand what your lender could do if you don’t make your payments.
- Make your payments, if at all possible
Budget carefully and see where you can cut spending. Eliminate any extraneous expenses so that you could possibly make your mortgage payment. If you have assets such as a car, jewelry, or other property, consider selling them for cash. Get another job to bring in more income. Holding on to your house should me one of your top—if not the top—priority if you face foreclosure.
- Avoid foreclosure prevention companies and scams!
Don’t waste your time or money on any companies that claim they can prevent foreclosure. These companies try to charge you large fees with the flimsy promise of preventing foreclosure. Don’t believe it. Put the money toward your mortgage, instead. And never, ever sign any document appointing another person or a firm to act on your behalf—you could be signing over the title to your property! Instead, contact a reputable attorney.