The prospect of losing your home is scary. Fortunately, there are simple
ways to avoid foreclosure in many situations.
At this time of year, most everyone is enjoying thrills from scary movies and haunted houses. For homeowners, though, few things are as terrifying as facing foreclosure. Getting a few months behind on your mortgage payments could mean possible homelessness. If you owe more on the home than it’s worth, you may even end up owing money in addition to losing your house.
Plenty of people fall on hard times. While foreclosure is a harsh reality many individuals are forced to face, there are things you can do to avoid it in many instances.
Don’t Ignore the Problem
One of the biggest mistakes people make is ignoring the problem of missed payments and potential foreclosure until it’s too late. If you are struggling to make your monthly payments, there are several reasons to contact your lender immediately:
The further behind you get on payments, the harder it is to catch up.
Every lender has programs in place to help borrowers who are facing financial difficulties.
Being proactive lets your lender know that you are aware of the problem and willing to fix it.
In addition to getting in touch with your lender right away, be sure to open any correspondence you receive in the mail. Early notices will likely provide you with information on programs to help you avoid foreclosure.
Waiting until you receive notices in the mail regarding pending legal action to take action is the worst thing you can possibly do in terms of keeping your house. Facing the problem head-on is scary, but it’s the best way to avoid the even scarier outcome of facing homelessness.
In addition to reaching out to your lender, contact a local HUD-approved counseling agency. These agencies can provide you with valuable information and resources on foreclosure avoidance in your area, and they also provide credit counseling services.
Make an Effort to Avoid Foreclosure on Your Own
Putting forth a genuine effort to keep your home looks good in the eyes of your lender. Consider your assets. There are plenty of things to sell for extra cash, including:
A second car
You may even be able to get some extra money by taking an early withdrawal from your retirement or by cashing in a whole life insurance policy.
While these things may not bring in a ton of money, selling them shows willingness and a major effort to get your mortgage payments back on track. If you are demonstrating an effort to make things right on your end, your lender will be more likely to help you with a foreclosure prevention plan.
Stay In Your Home
When foreclosure seems imminent, it would seem to make sense to pack up and move somewhere else. Doing so could make you ineligible for certain programs, though, so it’s best to stay put.
The “Hope for Homeowners” program is a good example. This program provides assistance to homeowners in the form of 30-year fixed-rate mortgages, but the program is only available to individuals currently living in the home in question.
Learn Your Rights
Carefully read through all of your loan documents to learn what your rights are. These documents will provide you with information regarding what legal actions your lender may take and the time frame in which these actions will occur.
Read up on foreclosure laws for Colorado. If you don’t fully understand your rights or you are struggling to find the specific information you need, don’t be afraid to seek assistance. Speaking to an experienced real estate attorney is a good way to not only learn more about your rights but also to find out about potential solutions.
Enlist the Help of a Caring Professional
At the Law Offices of Eric L. Nesbitt, PC, we will help you work with your lender to avoid foreclosure. We can help you take advantage of foreclosure prevention plans and get your payments back on track.
In the event that foreclosure cannot be avoided, we provide compassionate service and guidance to help you and your family navigate the process as painlessly as possible. To schedule a consultation, call my office at (303) 741-2354. I look forward to assisting you.
Eric L. Nesbitt, Esq.
Law Offices of Eric L. Nesbitt, PC
Nesbitt Law Offices Website