Here are a few tips to remember when facing foreclosure.
• Almost all lenders prefer not to go all the way with the foreclosure process. Why? They are in the lending business, not real estate investing. They want you to become current. This in mind, don’t panic or feel stressed out. There are many ways to get help with your situation. The worst thing you can do is ignore the situation.
• Get a hold of your lender. An initial call is best, followed up with letters so there is written proof of communication with your lender. If you prefer not to talk to your lender directly, there are services available that will try and work out a deal that is satisfactory to both parties.
• Think about refinancing your loan. This option allows you to make all necessary payments and bring the loan current before the foreclosure process completes.
Your first strategy should be to negotiate some workout to pay the arrears and make future monthly payments. Special programs are available for those with FHA, federal VA loans and others covered by state veterans programs. Ask your lender what’s available for you.
• People with FHA, federal VA loans and other loans covered by veterans programs have special programs available to them. It’s best to contact our local lender as to which program is available to you. If you do not have this type of loan, try and negotiate a special payment plan to eliminate the arrears and catch up on missed payments.
• Another option is to simply sell the home. You can often find investors willing to buy the home promptly. Beware of shady investors! It’s also possible to sign the deed over to the lender and end the foreclosure that way. Talk to your lender about this option is you feel it’s a viable one for your situation.
• If you feel the previously mentioned tips are not going to help you, you have the option of filing for bankruptcy. This will stop the foreclosure temporarily and buy some time to work out the problem. This method is best avoided because it will severely damage your credit rating for years into the future.
• Foreclosure Prevention Services. There are many services that will attempt to stop your homes foreclosure. With so many out there it’s hard to choose what one is good. One we like is eForeclosure Prevention. You can fill out a quick no obligation contact form and they will get in touch with you and provide a game plan for your specific situation.