Five Things You Can Do To Avoid Foreclosure
We keep hearing that millions of American homeowners are in financial trouble and can not pay their mortgages. There are a lot of reasons for this situation, but mostly it has to do with living beyond our means on borrowed money and now we can't make the payments. If you find yourself among those who face the loss of your home because you can no longer afford the mortgage, here are five things you should do ...
1. Call Your Lender. Lenders want your money. They do not want your house. The last thing your lender wants to do is foreclose on your property. As soon as you start having problems covering the payment, call your lender and talk to them about what you can do to keep your house and avoid a foreclosure procedure.
2. Stay informed. I'm one of those people with the bad habit of not opening my mail for days at a time. If you're missing payments on your mortgage, you better open the mail from your lender in a timely manner. Early on, your lender will be mailing you friendly offers which can help you avoid foreclosure. If you don't respond, the tone of those letters will likely change and eventually will become legal notices. Your best bet is to respond to every letter you get from your mortgage lender, take advantage of any offers of help and answer any questions the lender may have in a timely manner.
3. Learn Your Rights. Foreclosure is not automatic. There are procedures your lender must follow. Many of the legalities of foreclosure are designed to protect you, the debtor. Foreclosure laws differ in different states. You need to know how your state operates and what the laws are where you live.
4. Live Within A Budget. You'd be amazed at how many people don't budget their income. Often, people have plenty of money to pay for their mortgage but they pay for everything else first -- like the new BMW, the club dues, clothes, nights on the town and finally pay for their mortgage with what's left if there is anything remaining. Wrong. Get a budget that puts a high priority on making your house payments. I'm thinking the order of budget priority should be like this: 1. food 2. house payment 3. everything else. Get the picture?
5. Get Answers From The Right People. There's a lot of bad mortgage adivce out there now. If you have questions, I suggest you call HUD, the Department of Housing and Urban Development. They offer counselors who can give you good, accurate advice. Most of the info from HUD is free or very low priced. You can reach HUD at 1-800-569-4287 or at their web site, http://www.fha.gov/.
For more information about real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
1. Call Your Lender. Lenders want your money. They do not want your house. The last thing your lender wants to do is foreclose on your property. As soon as you start having problems covering the payment, call your lender and talk to them about what you can do to keep your house and avoid a foreclosure procedure.
2. Stay informed. I'm one of those people with the bad habit of not opening my mail for days at a time. If you're missing payments on your mortgage, you better open the mail from your lender in a timely manner. Early on, your lender will be mailing you friendly offers which can help you avoid foreclosure. If you don't respond, the tone of those letters will likely change and eventually will become legal notices. Your best bet is to respond to every letter you get from your mortgage lender, take advantage of any offers of help and answer any questions the lender may have in a timely manner.
3. Learn Your Rights. Foreclosure is not automatic. There are procedures your lender must follow. Many of the legalities of foreclosure are designed to protect you, the debtor. Foreclosure laws differ in different states. You need to know how your state operates and what the laws are where you live.
4. Live Within A Budget. You'd be amazed at how many people don't budget their income. Often, people have plenty of money to pay for their mortgage but they pay for everything else first -- like the new BMW, the club dues, clothes, nights on the town and finally pay for their mortgage with what's left if there is anything remaining. Wrong. Get a budget that puts a high priority on making your house payments. I'm thinking the order of budget priority should be like this: 1. food 2. house payment 3. everything else. Get the picture?
5. Get Answers From The Right People. There's a lot of bad mortgage adivce out there now. If you have questions, I suggest you call HUD, the Department of Housing and Urban Development. They offer counselors who can give you good, accurate advice. Most of the info from HUD is free or very low priced. You can reach HUD at 1-800-569-4287 or at their web site, http://www.fha.gov/.
For more information about real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
-30-
posted by Terry Ward at 4:53 AM
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