Stop Foreclosure

Are you having trouble keeping up with your mortgage payments?  Many American's are these days, so you are not alone.

If you are not able to make your mortgage payment and are facing foreclosure on your home, whatever the reason, the most important thing is not to panic and most of all do not deny or ignore the issue.  Facing the facts with honesty and integrity is your only way to stop foreclosure. 

Why is it important not to ignore home mortgage foreclosure notices?

When you fall behind on your mortgage it becomes harder and harder to stop foreclosure as late fees and penalties as well as past due principal payments mount.  The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

Be proactive and contact your lender before they contact you.

Lenders do not want to foreclose on your house and will do everything they can to help you stop foreclosure.  Contacting them early and being honest about your situation will help them help you to find the best way to stop foreclosure.  Many banks have programs established to help distressed borrowers through hard times.  Remember – stopping foreclosure is in both parties best interest.  

Quickly respond to all mail and calls from your lender.

If you want to stop foreclosure, opening the first notices from your lender is a must.  Often times these notices layout the best options and plans available to stop foreclosure.  If you fail to act on these notices, your chances to stop foreclosure drop significantly as further notices will likely be notices of pending legal action. When you go to your home foreclosure hearings failure to open mail or answer calls will not be an acceptable excuse to delay or stop foreclosure proceedings.

Know your mortgage and home ownership rights.

Knowledge will be your strongest weapon to stop foreclosure.  In order to avoid being tricked, intimidate or outright scammed, you must know the terms of your home loan and your home ownership rights.  The first thing you should do is find your home loan documents and read them carefully so you know what the consequences are if you cannot make payments.  In addition, to have a fair shot at stopping foreclosure, learn the foreclosure laws and foreclosure timeframes in your state.  Every state has different foreclosure regulations – be sure you are armed with the information specific to your state.

Did you know the government provides free counseling to help you stop foreclosure?

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide to help homeowners stop foreclosure.  Housing counselors can help you stop foreclosure by helping you understand foreclosure law and foreclosure prevention options.  They can also help you organize your finances and even represent you in negotiations with your lender. Need help to stop foreclosure now? Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

Cut Spending and Stop Foreclosure.

Keeping your home should be your first priority.  Stop foreclosure by reviewing your finances to see where you can cut spending and catch up on your mortgage payments.  Cut out all optional expenses – yes, cable television is an optional expense – and so is that second car.  Show your lender you are serious about stopping foreclosure by making serious sacrifices.  If you must, even delay payments on credit cards and other unsecured debt until you have paid your home mortgage.  To stop foreclosure, all your effort and income will have to be aimed at this one goal.

Stop Foreclosure by selling assets.  

If cutting spending alone is not enough to stop foreclosure, look at selling off assets such as stocks, life insurance policies, cars, bikes, jewelry, art – pretty much anything of value.  Once again, this will show your lender that your serious and will do anything it takes to stop foreclosure. 

Stop Foreclosure by getting a 2^nd job

Get a second job if your income level is still not up to the level you need to stop foreclosure and make your home mortgage payments on time.  If you have working age children, ask them to help out with a part-time job.  The home belongs to the whole family, and the whole family should be involved in stopping foreclosure to save it.  This is another show of good faith that lets your lender know you are doing everything you can to stop foreclosure.

Don’t use foreclosure prevention companies to stop foreclosure.

When you are facing foreclosure many foreclosure prevention companies will contact you to offer to help you stop foreclosure.  These will be very skilled salesmen who will use your fear of losing your home against you to make money for themselves.  Do not pay them money which would be better spent to stop foreclosure by paying it towards your mortgage instead.  While most of these companies do provide a legitimate service, you can probably get the same information for free from a HUD approved housing counselor.

Don't lose your house to foreclosure recovery scams!

Any company that claims they can stop foreclosure immediately if you sign a document appointing them to act on your behalf may be tricking you into signing over the title to your property, making you a renter in your own home.  Do not sign any legal documents without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.