There’s not much worse in the world than the feeling you might not be able to continue paying the mortgage on your property. The word “foreclosure” brings up the ultimate in terrifying instances of being forced out of your home and onto the street, which means that few people that have to face the possibility are thinking particularly clearly. However, there are strategies you can employ in an attempt to avoid this fate. Here are some tips to avoid foreclosure and get your life back on track.
Your First Step: Always Talk to Your Lender
Once you come to the realization that you might have difficulties making payments on your mortgage, your first step always must be to talk to your lender. Contacting them and revealing your financial problems will provide them with opportunities to work together with you in coming up with a plan. This can be a difficult step to take, as you’re literally calling up a company that you owe hundreds of thousands of dollars to and telling it that there’s a very real possibility that you’re not going to be able to pay. Feelings of embarrassment, shame, or fear are common, but you need to push past these negative feelings if you want to salvage the situation and keep yourself and your family in your home as long as possible.
Use the Resources Available to You
The US government has many different programs that have been developed in order to provide you support during times when you might be in danger of your property entering foreclosure. One such program, the Making Home Affordable (MHA) initiative, can provide you with free counseling, free advice, and free assistance in making sure you can stay in your home – or, if need be, getting out in a safe manner. You can either visit the MHA website or call its toll-free number (1-888-995-HOPE). Additionally, there are local MHA counselors across the country. Contacting one directly, if he or she is in close proximity to you, could also be an option. Additionally, the housing agency of your state could is likely to have a foreclosure avoidance program of its own that you can avail yourself of for support and assistance.
Watch for Foreclosure Scams
Finally, be on the lookout for shady individuals or companies that are keen on preying upon your desperation by purporting to go to work for you in order to help you keep your home, or sometimes even sell it outright while avoiding foreclosure. However, a large number of these organizations or individuals are more interested in scamming you out of as much money as possible instead of actually helping you. Beware of services that are advertised either online or in your local newspapers, are advertised on flyers posted up in community locations such as laundromats, supermarkets, and convenience stores, or individuals contacting you directly after finding your information about a pending foreclosure in a legal notice posted in a newspaper. Additionally, if this company offers to negotiate directly with your lender, offers to “help” you file for bankruptcy to stop your foreclosure, or tries to convince you to pay them your mortgage payments instead of your lender, your best bet is to file a complaint against this company as soon as possible so the authorities can deal with them accordingly. Contact your local US Trustee office if the scam involves bankruptcy. Otherwise contact the Federal Trade Commission to report other types of foreclosure scams.
Consider Selling As-Is to a Cash Buyer
If it seems as if a foreclosure is inevitable, you still have an option left. You can sell your house for cash to a real estate company that specializes in buying houses as-is. You will have to pay whatever’s left on your mortgage at closing, but if you have enough equity in your house you will leave with some extra cash in your pocket in the end.