If you are struggling to pay your monthly mortgage or you are close to defaulting on your loan, here are some steps to take in avoiding foreclosure. Keep in mind the banks want you to keep your home and will do everything possible to help you during this time of financial hardship.
The most important thing you have to do is to act quickly. Delaying or avoiding the problem will only make preventing foreclosure more difficult. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
Contact your lender (NOT your loan officer but your bank that you pay your mortgage note to). Your lender will be more likely to work with you to solve the problem, rather than be stuck with yet another bank owned property to deal with. Let your lender know that you are making an effort to pay your mortgage, and they will often provide other payment options.
See if you qualify for a LOAN MODIFICATION or a PRICE REDUCTION to current market value.
Speak to a HUD approved housing counselor. These professional consultations are often free, or very affordable, and they can help you to understand your options. If you are Southern CA give us a call and we can direct you to a local NON-PROFIT ORGANIZATION. Most HUD counselors work closely with the national HOPE programs.
Decrease spending or increase income. After health-care, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
If you make the effort to follow these steps; stay in contact with your lender, explain your situation and your willingness to make changes, explore the possibility of loan modification, and take control of your assets and spending, you are much more likely to win the fight against foreclosure.
If you have income loss or reduction & unable to continue the next best step to consider would be a short sale. Make sure you use a local short sale specialist in your area. Not all real estate agents are versed in short sale negotiating. Do your due diligence when choosing your agent. Ask them to provide substantiate documentation of their closings. Trust me, that will weed out the competition.
We at Integrity Home Preservation Group have counselor hundreds of home owners since 2005. We serve all San Diego and Riverside County. There are no up front fees for our service.
For more information or to speak with a HUD certified crisis counselor give us a call.
INTEGRITY HOME PRESERVATION GROUP (619) 454-2937