8 Tips to Avoid Foreclosure
Here are 8 tips to avoid foreclosure. Above is a map courtesy of Zillow, which shows the locations of 500 SE Washington foreclosures. Foreclosure didn’t just suddenly appear like a box of kittens on your doorstep. Like hurricanes, there are signs of approaching trouble.
- having difficulty paying the mortgage payment on time
- having very little savings for emergencies
- using credit cards to get to the next pay day
- paying the minimum on your credit cards
- neglecting doctor and dental visits
- shrinking from the ring of the phone
- change in employment or change in debt to income ratio
If you see your family in that list, you may be facing possible foreclosure.
Here are 8 tips to avoid foreclosure:
- Contact your lender and level with them. They may be nervous by the extent of your problem, but they have seen this before and will demand you take steps to fix it. That may require you selling your toys and making major cuts in your spending.
- Don’t ignore your mail. That is one of the 8 tips to avoid foreclosure. Many have been in your shoes. The first thing many did when the mail came was throw the bills in a drawer. Those first envelopes will contain helpful suggestions to get things under control. Then will come legal action. Ignoring those notices can cause you to lose everything.
- Know the Process of Foreclosure: If you miss a few mortgage payments you are in default. Your mortgage servicer will probably send a letter or two reminding you to get caught up, as well as call you to try to collect the payments. When the lender issues a notice of default and you will have not less than 30 days to cure the default. You can cure the default by bringing the loan current with the lender and paying the late fees
- In Washington, foreclosures are judicial, which means the lender (the plaintiff) must file a lawsuit in state court. Here you have another opportunity to avoid default by responding to the court. If you file an answer, the lender cannot obtain a default judgment. Instead, the lender will either: seek a summary judgement or go to trial.
More of the 8 tips to avoid foreclosure:
- Contact Professionals – One of the best of the 8 tips to avoid foreclosure is contact professionals. Your banker does not want to own your house. When you come clean about your financial situation, he may be able to modify the loan, offer forbearance, or give you repayment options.
- Contact a credit counselor. The objective of most credit counseling is to help the creditor avoid bankruptcy, as well as provide basic education on financial management. Many counseling services also negotiate with creditors on behalf of the borrower to reduce interest rates and late fees.
- Contact a bankruptcy attorney. That sounds contrary to taking responsibility, but you need to know your options so you can make informed decisions.
- Contact a professional real estate investor. You may want to sell your home fast to get out of the problem or to save your credit rating. Awesome Home Solutions, LLC is here to help homeowners out of any kind of distressed situation. As investors, we can help homeowners out of just about any situation, no matter what! There are no fees, up-front costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
To summarize the 8 tips to avoid foreclosure, recognize approaching trouble, contact your lender, and seek professional help.
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