Steps to save your home from Foreclosure
Are you going to through a Foreclosure or are you thinking that you may lose your house because you can’t afford the monthly payments anymore. There is hope and things to try to avoid Foreclosure. Don’t give up and read the following:
When having trouble making a mortgage payment, the first call should be to the lender.
Lenders will want you to catch up quickly and may encourage you to borrow from relatives or elsewhere. But before taking on new debt, consider reviewing your options with a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD). Find one at hud.gov or by calling 1-800-568-4287.
If you’re in too deep:
When an adjustable-rate mortgage resets or you have a financial setback, your mortgage may simply become unaffordable for your level of income. In that case, you should call your lender or a housing counselor or take advantage of one of several special programs and ask for a loan modification.
Hud launched a new program. Hope of Homeowners, in October 2008. It aims to help homeowners refinance to more affordable mortgages through the Federal Housing Administration (FHA). You can apply through FHA-approved lenders listed by HUD.
Another program, the Hope Now Alliance, works to help borrowers modify the terms of their mortgages subject to the lender’s approval, You can apply through mortgage lenders and housing counselors or by contacting Hope at 1-888-995-HOPE (4673) or on the Web at homenow.com.
7 Years:
The length of time a Foreclosure remains on a Credit Report. Source: myfico.com If those services aren’t enough, don’t stop dialing.
More than a dozen that’s have their own foreclosure-prevention programs. Other states help struggling homeowners through state housing bureaus or the agencies that oversee banks and mortgage lenders. In some cases, the state or county consumer protection agency can steer you in the right direction.
In addition to government programs, nonprofit groups charities and churches increasingly are reaching out to help. To find one, call your local United Way or city or county health and human services department.
Tips to avoid Foreclosure
The U.S. Department of Housing and Urban Development offers these tips for homeowners who are having trouble making mortgage payments: 1. Don’t ignore the problem. The more you fall behind, the harder it may be to catch up. 2. Contact your lender as soon as possible. Lenders want to avoid foreclosure, and have options to help homeowners. 3. Respond to all mail and other communications from your lender. Ignoring mail won’t make the problem go away. In fact, notices you receive may contain important information about options to prevent foreclosure. 4. Know your rights. Read the loan documents and know what actions your lender may take. Learn about foreclosure laws in your state. Source: Principal Magazine by Brian J. O’Connor Winter 2009
Don’t give up
Anything is possible, just don’t give up. Ask for help from the above places and others. Ask people for advice and their ideas. Keep the Faith that anything is possible. If you do lose your home to Foreclosure it isn’t the end of the world. Many people have lost their homes in Foreclosure. It is harder to get a loan now because of the new rules, you may have to wait at least 3 to 5 years before purchasing your next home through a bank. But you may be able to through a Contract with a home owner or builder.
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