If you are falling behind on your mortgage payments, foreclosure may occur on your home. Foreclosure is the legal process your lender can use to take possession of your home, and when this happens you have no choice except to move out of your house. However, in the event your property is worth less than you owe on your mortgage loan, you not only will lose your house, you will also owe an additional amount of money through a deficiency judgement.
Needless to say, deficiency judgments and foreclosures will most likely interfere with your ability to get credit in the future, so you should do everything you can to avoid a foreclosure. This article tells you 3 things you should immediately do to avoid a foreclosure.
Don’t ignore the lender
When your lender sends you letters, don’t ignore them. Instead of ignoring your lender because you are having problems making your payments, contact your lender’s Loss Mitigation Department. Tell them your situation and be prepared to provide them with financial information like your monthly expenses and income. If you don’t provide them with this information, then they may not be able to help you.
Stay in your house
If you abandon your property, you may not be able to quality for any help whatsoever, and you may not have any alternatives to a foreclosure.
Contact a HUD – approved counseling agency
Contact 1-800-569-4287 or TDD 1-800=-877-8339 to find the nearest counseling agency to you. These agencies have a lot of information on programs and services that are offered by Government agencies as well as community and private organizations that may be able to help you. Furthermore, the housing counseling agency may offer credit counseling too, and these services are free of charge in most instances.
Lean more foreclosure prevention tips after you do the 3 steps mentioned in this article.
If you are in a situation where you are facing foreclosure and need help understanding your options, give us a call at 713-322-3861 and we’ll be happy to assist you.