subject: A Guide To Avoid Foreclosure [print this page] A Guide To Avoid Foreclosure A Guide To Avoid Foreclosure
If you are facing foreclosure, it can be a frightening and stressful prospect. It may seem daunting to even acknowledge that it is happening to you. Most people will naturally search for the easiest way to get out of this situation. In some cases, they do nothing and let nature take its course. It is important to know that there are other options available to help you avoid foreclosure and keep your home. If there is a foreclosure on your record, it may affect your credit rating. Moreover, it can be emotionally and socially damaging to you. Not to mention, you will have to worry about where you will live. For one, you should never ignore the problem. It will not go away and will only get worse as time goes by. A mortgage lender has given you a loan in order for you to buy your home. Sometimes, an economic or health crisis makes it impossible for you to make regular payments on time. The first thing you should do, is contact your lender personally. Be honest about your situation and the problems you are facing. Many times, the lender will work with you to find a solution. A loan modification is always a possibility. Renegotiating your loan terms to make your payments easier may also help to avoid foreclosure. The last thing your lender wants is to take your house. However, if you ignore them, you will leave them no choice. So, always keep in contact no matter what. If you expect your hardship not to last a long time, you can ask your lender for an extension on your grace period. Another option is to ask that your loan repayment be re-scheduled for a future date. They will probably ask you to provide proof of funds that you expect come in from whatever source. For example, a new job, inheritance, settlement, etc. Don't be afraid to ask for a lower interest rate. Interest rates change all the time, and if it is lower, that will work in your favor. Whatever it takes to avoid foreclosure is your goal and your lender's goal, as well. The last thing they want is to go through the hassle of the litigation and the selling of your foreclosed house. While you want to share whatever hardships are plaguing you with your lender, do not expect sympathy alone to do the trick. You need to have a plan to outline, not only what your problems are, but how you are going to solve them in the future. Having short and long term goals to deal with your financial difficulties is essential if you want to keep your home. Have a realistic time frame and share this with your lender. Having frank and honest communication, along with substantial proof will convince your lender of your sincerity and confidence of overcoming your situation
