How to Stop Foreclosure–Part 1
Please Note: The following article is intended to be informative only–it is not legal or financial advice. Be sure to consult your own legal and financial advisors before making decisions.
How to Stop Foreclosure–Part 1
This is the first post in a two-part series. Read How to Stop Foreclosure–Part 2, here.
Foreclosure is not a word that any of us wants to even hear, let alone think about the process happening to us. But, financial hardships may befall the most responsible people and the foreclosure process may look more and more like it may happen in your life or the life of someone you love. Thankfully, there are some things that you can do to stop from being foreclosed on. Foreclosure isn’t easy, and stopping foreclosure isn’t easy, but if you are well informed you may be able to keep from losing your home.
Stop the Foreclosure Process in its Tracks
The best thing you can do is to stop the foreclosure process in its tracks. As you may or may not know, foreclosure is a long, drawn out process that gives the owner of the home plenty of chances to stop the process and deal with their debt. The first interactions that the bank or lender has with you is not part of the formal foreclosure process, and that is a good time to get a handle on the situation and really keep it from going any further. If you have missed a handful of mortgage payments, don’t write it off as too late to save your home and your current lifestyle. If the bank has not yet sent you a notice of foreclosure, the process is not yet official and you may still have plenty of time to turn it around.
The first thing you should do is respond to the phone calls and the letters that are coming in the mail for you about your late payments. This may be painful and something you don’t feel like doing, but it will be less painful than having your home taken right out from under you. Call your lender–you may be surprised to learn exactly how willing they are to work with you. If you explain what your financial situation is, your lender will likely be willing to work with you and will just be happy to hear from you. Sometimes, all it takes to stop the process from becoming a formal one is a response from you.
Once you contact the bank or lender you need to be prepared to set up payment arrangements that will get you back on track. Let the bank know exactly how much you can pay each week. Even if you can only pay a couple hundred dollars each week, this will eventually get you back to where you should be and the bank will consider it a good faith effort to keep your home. Usually, as long as you keep up with these scheduled payments, you’ll find that the bank is willing to work with you as long as you need them to so that you can keep your home as well as keep them off your back. It might take awhile, but you can get on top of your late payments. Remember, your bank doesn’t want to foreclose on your home, so you should take all of the chances you are offered and communicate with the bank about the issues you’ve had paying your mortgage, and then arrange payments, and be sure to make them.
For more information, please read the next post in this series, How to Stop Foreclosure, Part 2.