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» Avoiding Home Foreclosure

How Did I Do It? > Personal Finance > Avoiding Home Foreclosure
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We’ve all known people at some point who have always had the means and wherewithal to pay their bills on time and in full, and who suddenly find themselves without the income to do that, whether it is due to a death, divorce or the loss of an income.

This is becoming, sadly more and more common, and in just the past year alone, many thousand people have lost their homes; people who never imagined it could happen to them.

There are ways to avoid, or to forestall foreclosure and perhaps to prevent some of the damage that might be done to your credit rating if you begin to think and plan as soon as it becomes clear to you that you will have a problem paying a monthly payment. The time to act is immediately to begin planning for the eventuality, and if it becomes clear that you will be able to meet the payment, no harm is done by your having been prepared for the worst case scenario.

Certain steps are necessary if you are going to attempt to keep your home.

*never avoid the letters and calls from your lender. Conversely call or write to them immediately. Explain your situation and offer information as to how much and when you might be able to pay. Offer them information on your financial standing, bills outstanding and payments due, so that they will be in a position to assist you in deferring payments, meeting the obligation in several installments per month or other means to meet the payment.

**Do not abandon the home. You may and probably will lose rights to the property and your equity in it. Additionally there are assistance programs available to you if you stay with the home.

**Some companies offer special circumstances assistance programs such as forbearance, partial claim or preforeclosure sales which while not always permitting you to keep the home, will avoid a foreclosure and may save your credit, permitting you to purchase another home at a future date. In many cases by skipping a payment or two, adding them to the end of your loan, you will be able to keep the home. Ask about these services.

There are many artists who practice a scam known as equity skimming. They will promise to assist you out of your problems by paying off your mortgage. Usually this does not happen, and the financial institution forecloses on the property in the end, but only after your home has been used by these artists for their own purposes.

Things that sound too good to be true. usually are. and need researched.

Be particularly aware of scams, or scam artists who will claim to want to assist you with your difficulties.
Use only reputable counselors, or third party assistants when attempting to resolve financial difficulties.

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