Understanding Home Foreclosures and How They Can Be Avoided
Understanding Home Foreclosures and How They Can Be Avoided
Property owners should be aware that a delay in mortgage payment does not automatically mean that they will lose their properties to foreclosure. Homeowners encountering troubles in paying their loans should immediately seek help and take steps to avoid home foreclosures.
Why the Problem Should Not Be Ignored
Once a homeowner fails to pay his monthly mortgage, he should be aware that he has already taken a step towards foreclosure. Although one late payment does not automatically qualify a house for foreclosure, owners should not wait until the problem has become more serious before taking action.
If certain circumstances are preventing homeowners from paying their loans, they should immediately contact their lenders and explain the situation. Lenders are more willing to help borrowers find ways to pay their dues than be bothered by a foreclosure proceeding.
Homeowners should also pay attention to the notices sent by lenders since they usually contain advice on how the situation can be resolved. Failure to read or respond to notices is also not an excuse that will hold in a foreclosure court.
Getting Help
Households facing possible home foreclosures should get in touch with agencies and organizations that specialize in helping troubled homeowners. The U.S. Department of Housing and Urban Development (HUD) offers help through agencies that provide free counseling.
These agencies can explain the legal nature of foreclosures and the options available to homeowners who wish to retain their homes. They can also explain to homeowners their mortgage rights and the laws on real property specific to the state where the homeowner lives.
Residential property owners should always keep documents and records of their homes and loan payments in good order since these documents can be the difference between losing and keeping their homes. They are often needed when consulting with government-licensed foreclosure help agencies and when negotiating for a loan modification.
Home foreclosures can be avoided if homeowners exert some effort to stop them early on. Open communication with the lender and some help from foreclosure assistance agencies can increase households' chances of retaining their properties.