The number of people in the United States of America who are facing an upside down mortgage situation and therefore foreclosure, is sadly high
. If you are one of them, this article is going to tell you how to prevent foreclosures.
If you find yourself falling behind in payments, call up your lender and let him know of your situation. If you do this before the lender sends you a Notice of Default, you can work out repayment options.
You will be given a certain period of time in which to come up current with your payments to the lender. Try to meet those demands as well as you can. This is the time to tighten your belt and look for some ways to make extra money.
You and your spouse may have to look for some extra part time or overtime work for a few months. Have some garage sales and do not splurge with the money you make, dump it all right on the mortgage payments until you are caught up and have some breathing room. This is your home you will be saving.
If you are finding yourself unable to come up to date with payments no matter how hard you try, make up your mind about selling your home. Thats the only way you can prevent foreclosure. It is a good idea to do the selling yourself as hiring a broker will have you pay a commission, which you certainly cant afford at this point of time.
Talk to your lender about whether you can opt for a short sale. It is a lot better than a foreclosure.
If all else fails, you have to sign a deed in lieu of the foreclosure to the lender. This means that you will be giving the lender a notarized deed, in return for which the lender stalls foreclosure proceedings.
Keep a cool head if you are facing foreclosure and you may be just be able to beat it.