The good news is, with the right representation many foreclosure filings do not result in actual foreclosures. There are steps you can take to improve your situation before it gets to that point. Facing foreclosure can be a scary and uncertain time for anyone. Knowing what steps to step if you receive a notice that you are facing foreclosure will help alleviate some of the stress and uncertainty.
Keep reading for 5 things you need to do right away if you are facing a home foreclosure.
1. Know the Process
The foreclosure process is a slow one. In fact, it can take up to 12 months to foreclose on a house.
It really depends on where you live and the motivation of your lender. Different states have different laws about foreclosure.
Some states require judicial proceedings that are time-consuming. Meanwhile, other states allow for a process that does not require any judicial proceedings, making the foreclosure happen more quickly.
Your attorney will be able to advise you about the processes in your state. There are a number of steps that have to happen after the first missed mortgage payment for a foreclosure to occur.
2. Hire an Attorney
It’s important to be aware of the process that will occur if your house is foreclosed upon, you likely have not been through the process before, and having an advocate on your side can be essential.
Hiring an attorney experienced in helping people avoid foreclosure or deal with its effects is your best course of action. Your attorney will help you through the process and give you advice on what steps to take.
3. Speak Up
Just because you missed a couple of mortgage payments and received a letter notifying you of default doesn’t mean your house will actually end up being foreclosed upon.
Now is the time to communicate with your lender if you have not already done so. Advising them of your circumstances will make them more willing to work with you.
4. Talk With a Counselor
The U.S. Department of Housing and Urban development offers approved foreclosure avoidance counsellors that can help you in addition to your attorney.
They are free of charge and can help explain alternatives to foreclosure, help you with your financial documents, and even help you communicate with your lender.
Be careful to go through this channel to find a counsellor. There are many scammers who target those in danger of foreclosure.
5. Stay Calm and Explore Your Options
Keep in mind that a notice of foreclosure is just a notice of the process that has begun.
You still have time and options if you take action right away. There are government programs that can offer you options including refinancing and loan modification.
You could even qualify for relocation expenses if you decide to sell your home. If you are facing home foreclosure, it’s important to act quickly.