Foreclosure is a terrifying possibility for some homeowners, so it’s best to prevent foreclosure altogether.
It’s easy to fall behind on payments, especially in the current economic climate, where the uncertainty surrounding the workforce has caused unemployment and foreclosures to rise. If your home is in jeopardy and you want to prevent losing it, you need to know exactly what to do and what to expect.
We’ve worked with many Texans to find solutions for a housing situation that is no longer working for them. Today, we’re sharing what you need to know to save your home and credit if you’re facing foreclosure—including ways we can help.
The very first thing you need to do is to gather every piece of information that relates to your homeownership, mortgage, credit, and current financial situation. Start requesting documentation regarding your income from all sources, including social security, alimony, etc. You’ll also need an exhaustive list of everything you currently pay for, from bills to entertainment subscriptions. Consider combing through and categorizing your expenses from the last three months for a snapshot.
You’ll want the following:
- Mortgage or deed of trust
- Monthly mortgage statement
- A comprehensive record of previous mortgage payments
- Property tax information
- Home insurance information
- Escrow statements
- Pay stubs
- Tax returns
- Documentation of additional income (social security, disability, alimony, etc.)
- Bills of all monthly expenses
Once you have all of your information at your fingertips you should be ready to start researching all of your options. Take a deep dive into your mortgage documentation to see what it says about missing payments and if reinstatement of the loan is possible—some allow reinstatement if payments are caught up.
Look up the legal protections and requirements for foreclosure in your state. Federal law usually prevents any action until there have been missed payments for 120 days, and there are even exceptions for the coronavirus disaster.