Sometimes, the unexpected occurs. If job loss, unexpected medical expenses, or any other money problem has left you financially stressed and unable to pay your mortgage, you are likely worried about foreclosure. Before you worry, though, understand you have options. Understanding how foreclosure works is half the battle!
Know the Process Takes Time
The foreclosure process can take up to a year. Typically, your lender will send multiple notices of your delinquent payments before sending a recorded notice of foreclosure. The company must also publicize the debt and schedule a foreclosure auction, which might not even occur. The lengthy, complicated foreclosure process means you’ll likely have time to come up with the missed payments or to find alternative housing. Read your paperwork to determine exactly which process might affect you.
Call Your Lender
Call your lender and ask to speak to the Loss Mitigation Department. Make notes of the names of people you speak to and of the conversation you have about your late payments. Next, speak to a foreclosure avoidance counselor provided by the Department of Housing and Urban Development. The counselor offers free information regarding how foreclosure works in your state, what your alternative options may be, and which financial documents you need to have on hand. Finally, let your lender know that you’re working with a counselor. It proves that you’re serious about finding a way to work through your debt and keep your home.
Research Government Programs
You may qualify for mortgage help from the federal … Read More
