Home foreclosure is becoming a big problem in this bad economy. This article outlines what you should do in order to prevent a foreclosure on your home. You need to be proactive and not reactive. Being reactive may be too late to save your house from foreclosure.
Don’t ignore the problem. The longer you do nothing about the foreclosure, the harder it will be to recover from it. You will be more likely to loose your house.
Contact your mortgage lender as soon you have a finical problem that prevents you from making a loan payment.
Do not ignore notices from your mortgage lender. Respond in a timely manner when you receive a letter from your mortgage lender.
Read your loan agreement and find out what your rights are when you can’t make a loan payment. Find out about foreclosure laws and payment time frames for your state by contacting the State Government Housing Office.
Learn about foreclosure prevention by visiting the Federal Housing Administrator at: http://portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL
Prioritize your spending by putting your house first and then health care. After that see what services you can cancel in order to meet your loan payments. Cancel cell phones, cable TV, second telephone line, internet service, and anything else not critical to living.
Use your assets to get out of mortgage loan debit. Life insurance policies that you can borrow from, sell jewelry, acquire a second job, even selling used items on EBay.
Seek foreclosure prevention by going to HUD Approved Housing Counselor. Don’t pay someone to negotiate terms with your lender. You will need all the money you have to pay your lender.
Don’t loose your house to a foreclosure recovery scam. Don’t let any firms have you sign papers that lets them act in your behalf. You may end up becoming a renter and not a house owner.