More and more homeowners are starting to experience the early stages of foreclosure since the Florida moratorium has been lifted. It is important to noted, that both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. Listed below, I have provided 8 tips on avoiding foreclosure during this challenging season.
1. Don’t ignore your situation.
As you get further behind, the harder it will be to reinstate your loan. Which means you more likely will lose your house ownership.
2. Contact your mortgage lender
Once you realize, you can not pay your mortgage contact your mortgage lender immediately. Most lenders do not want your house and will provide different options during a difficult financial time.
3. Open, read and respond to all mail from your mortgage lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action.
4. Always now your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
5. Educate yourself and understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm.
6. Contact a HUD-approved housing counselor.
Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.
7. Prioritize your spending.
Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate.
8. Sell your assets.
Do you have assets that you really don’t need like a second car, jewelry, a whole life insurance policy. You should sell them so you can make payments towards your mortgage.
If you are a homeowner that maybe experiencing foreclosure concerns and need legal assistance, please contact Martin Law Group. We are providing free consultation for month of November.
