What You Should Not Do To Avoid Foreclosure

Many people who have missed their monthly mortgage payment for the first time think

that lenders will immediately demand that they pay the full amount of what they owe and thus avoid any form of contact with their lenders, be it by phone, letters or email. They think that they are already facing foreclosure of their homes because of one single payment. However, if they read their loan documents, they would know their rights and would realize that having missed one payment doesnt mean an outright foreclosure. However, what would usually happen is that they would continually ignore their lenders attempt at contacting them until such time, and this would be the third time they would have missed their monthly payments, that things have gotten worse. They would be in deeper debt and financial ruin, and their lender would be actually starting foreclosure procedures against their home. At this point, the lender would be issuing a demand letter or notice to accelerate, asking them to bring their account current within 30 days. Lenders would usually only accept the total amount due and not some partial payment at this time.

You see, foreclosure doesnt happen in an instant; it is a process that starts the moment you missed a monthly payment and then continue until the third missed payment and so on when the final notice is still ignored after the fourth missed payment. While 3 months or so is short and doesnt give much time for people to recover financially, they give enough time for people to stop foreclosure proceedings against them. What they have to do doesnt necessarily entail having to earn more in that period or come into a huge amount of money enough to pay their arrears. The important thing during this period is that they remain in contact with their lenders who have more to gain in helping them retain their homes than lose them. Lenders, believe it or not, want them to stay in their dream homes and can help them through their financial crises by presenting options that can reduce their payments or make them more affordable. Not opening their letters or answering the phone will only make matters worse and make reinstating their loans more difficult, increasing the chances of losing their homes altogether.

Homeowners facing the possibility of foreclosure should also know that they can avail for free of HUD- approved housing loan counselors. They can help every step of the provided they are consulted very early in the case. In fact, they should be involved after the first missed payment so they can use what they know in order to help individual who are having problems making mortgage payments. Avoiding foreclosure may not sound easy and indeed, it may present many more problems that borrowers anticipated. However, doing something about it will always help. Stopping foreclosure involves actively pursuing help, especially from their lenders instead of ignoring their calls. The government is genuinely offering a helping hand too, because they know that people faced with financial difficulties need help and helping them will help bring the economy back to its feet.

by: Peter B Andrew

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