The worst thing a homeowner can face is the loss of their home. Learn how you can prevent foreclosure from a natural disaster or because you can’t afford the monthly payments. Discover how you can avoid foreclosure with some tips from the experts.
Tips to Prevent Foreclosure
Foreclosure can have lasting consequences, with the worst one being the effect it has on your credit. It can also result in paying more to a mortgage lender. Below are some tips to help you avoid this unfortunate situation in the first place.
- Don’t ignore the problem. The longer you put off paying your mortgage, the harder it becomes to get your loan in good standing again, and the more likely you are to lose your home.
- Contact your mortgage company, asap. Lenders realize some situations can’t be controlled and are there with options to help borrowers through rough times. Be truthful, and they will likely work with you.
- Open and respond to any communication from your lender. It’s important not to neglect any mail or email, as they will have key information for foreclosure prevention and any legal action pending. Don’t ignore this as the courts won’t see the failure to open the mail as an excuse.
- Know your mortgage rights. Gather your loan documents and read them, so you know precisely what your lender states about not being able to pay your payments. Learn about foreclosure laws and timeframes in your state (every state is different) by getting in touch with the State Government Housing Office.
- Call a HUD (U.S. Department of Housing and Urban Development) approved housing counselor to get free or very low-cost housing counseling nationwide. They are there to help you understand the law and your options, organize your finances, and represent you in negotiating with your lender for assistance. Call (800) 569-4287 or Find a HUD-approved housing counselor near you.
- Learn about foreclosure prevention options. You can find valuable information about foreclosure prevention (known as loss mitigation) here.
- Prioritize your spending. Take some time to review your finances and see about cutting spending to allow for paying your mortgage payment. Reducing memberships, cable-TV, or other entertainment and other non-essentials may be necessary. Delay any credit card payments and other “unsecured” debt until you’ve paid your mortgage.
- Use your assets. Look at jewelry, a second car, ar anything else you can sell for cash to help. Is there anyone in the home that can take a job to help get extra income? It may not be enough to increase your income or available cash significantly, but it shows your mortgage company that you’re willing to make sacrifices to keep your home.
- Don’t go with foreclosure prevention companies. There’s no need to pay fees for avoiding foreclosure; use the money to pay the mortgage instead. Many for-profit companies promise to negotiate with your lender if you go with them, but although they can be legitimate, they typically charge high fees. (two or three month’s mortgage payment)
Contact Texas Sell Now to Avoid Foreclosure
Instead of dealing with the possible situation of taking out a foreclosure on your home, consider selling your home for cash. Texas Sell Now will buy your home in Dallas or Fort Worth, TX, and charge no fees or commissions. Contact us to learn the process and get out from under the crush of debt.