Ten Measures to Help A Homeowner Avoid Foreclosure
Foreclosure is unfortunately the last thing people want to happen; so, in case you are in trouble, you can follow some steps to avoid this. Sometimes though it is completely essential that the borrower needs to sell their home before it goes into foreclosure. Contact CashHomeInvestors.com to see what we can do the get you a fair offer on your home. Here are some of the preliminary steps you as a homeowner can take to avoid foreclosure.
Gathering All of Your Loan And Property Documents
Collect all your documents and records, which are relevant to your home, and arrange them together in a file. The documents in this file may include any loan papers, copies of mortgage, promissory note, papers of previous dealing of house etc. These documents may also include monthly billing statements, property tax and insurance information, or any records of payments you have made.
Learn Your Legal Rights
After organizing your documents in a file, you should read the documents and research on the terms and consequences of hypothetical situations where the money isn’t returned. Federal law states that the lender cannot start a foreclosure until after the limit of 3 months of payment deadline.
Organize Your Financial Data
Once you have gathered your home documents and records, it is also important to collect and organize your financial information. All recent profits, losses, bank statements, taxes are included in this; even if you are self-employed.
Adjust Your Budget
Reviewing your budget is very important to save yourself from foreclosure. You can make a list of your expenses including groceries, bills etc and exclude the extras (memberships and clubs) to save money. You can also opt for lesser credit card payment in case you cannot eliminate this completely.
Learn About Possible Options
Borrowers and Lenders have complete access to the temporary or even permanent loss mitigation options that can help them to prevent a foreclosure. This includes Loan Modification, Forbearance agreements and Re-payment Plans.
Contact Your Current Service Provider
In case you miss a payment, contact your servicer immediately find out if you qualify for any foreclosure alternative.
Contact a Certified Housing Counsellor.
A HUD-approved Housing counsellor can assist you in coming up with alternative ways to prevent foreclosure and might even help you with other special programs that offer assistance.
Stay Away from Foreclosure Rescue and Loan Modification Companies.
Companies offering Loan Modifications and Foreclosure Rescue may seem like the only way out, but most of the times, these companies turn out to be scams that only offer a little help at the time being, or even no help at all.
Know About Current State Foreclosure Laws
Foreclosure laws vary from state to state, which is why you should learn about the current laws of the state you are in for the following reasons:
- To know the duration, you have to make a deal before you lose your home.
- To know about rights and protection during the foreclosure procedure.
If you have tried other options to avoid foreclosure and still it still didn’t work, you may need to sell your home. A home can be the largest expense an individual or family incurs, and sometime it is hard to swallow the payment and downsizing is essential. Cashhomeinvestors can help you in selling the house smoothly and ensure it happens fast so the bank will not be able to foreclose on the home, ruin your credit and more.