We understand the stress that a possible foreclosure can create for you and your family. That is why we give you the flowing tips that can help you prevent your home from being foreclosed.
1.Do Not Ignore the Problem: Take foreclosure seriously and do not let yourself get further behind. Ignoring a potential foreclosure will make it more difficult to reinstate your loan, making it more likely that you will lose your house.
2.Speak to Your Lender Immediately: As soon as you become informed about your problem, you need to get in touch with your lender to discuss what other options are available for you.
3.Respond to all Correspondences from Your Lender: Your first foreclosure notice should have prevention options that can help you sort out your financial problems. The letters your lender sends you also include important notices of possible or pending legal actions. Failing to open letters from your lender will not be a valid excuse in court.
4.Learn Your Mortgage Rights: Find and review all of your loan documents to determine what your lender can or can’t do if you are unable to make your payments. Research and become familiar with foreclosure laws and timeframes in your state.
5.Prioritize Spending: After your healthcare expenses, keeping your home should be your first priority. Go over your finances and figure out where you can cut back on spending. Eliminate optional spending like cable TV, memberships, and entertainment. Put your credit card and other unsecured debt payments on hold until your mortgage is paid.
6.Sell Your Assets: If you have a second car, jewelry, or life insurance policy, you should sell these assets for cash to help get your loan reinstated. If your assets aren’t enough to substantially increase your income, it will still show your lender that you are willing to make sacrifices to keep your house.
There are many different programs that are available to assist homeowners who are struggling with their monthly mortgage payments and are at risk of foreclosure. Most of these programs are administered through the U.S. Treasury Department and HUD.
- Home Affordable Modification Program (HAMP)
- Principal Reduction Alternative (PRA)
- Second Lien Modification Program (2MP)
- Home Affordable Refinance Program (HARP)
- Treasury/FHA Second Lien Program (FHA2LP)
- Home Affordable Unemployment Program (UP)
- Emergency Homeowners’ Loan Program (EHLP)
- FHA Special Forbearance
- Home Affordable Foreclosure Alternatives (HAFA)
Each of these programs above are intended to provide relief for struggling homeowners’ who want to keep their homes.
Bankruptcy can also be a useful tool to help you keep your home. When you file a Chapter 13 or Chapter 7 bankruptcy, the court will issue an Order for Relief. The order will grant you an “automatic stay,” which tells your creditors to immediately stop their collection efforts. This can also be used to postpone a foreclosure sell until your bankruptcy is finalized.
Are you facing foreclosure on your home? Do you need help determining your refinancing options? We can help. Contact our Worcester team of foreclosure attorneys to set up your free case evaluation today.