Tuesday, June 11, 2019

Tips To Avoid Foreclosure

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Tips to Avoid Foreclosure

According to the latest statistics as revealed by the ATTOM Data Solutions Q1 2019 U.S. Foreclosure Market Report, there were nearly 162,000 properties undergoing the foreclosure process. Of course, that’s one statistic that few homeowners would ever want to be part of, but it can and does happen to some of the best of it. Perhaps you purchased a home among Hamilton real estate a few years ago, or refinanced to meet expenses, and find yourself unemployed due to lay off or a medical condition. Or, you could be one of millions of Americans who took out a subprime ARM (adjustable-rate mortgage) and are set to have your interest rates raised to a much higher percentage.
The better news is that these tips can help you avoid foreclosure so that you can stay in your home.

Understand Your Rights

Go through all your loan documents and read them thoroughly so that you understand what your lender might do if you are unable to make your payments. Find out about foreclosure laws and timeframes in your particular state by contacting the State Government Housing Office, as each state is different.

Contact Your Lender ASAP

If you think you’re headed to foreclosure, be sure to reach out to your lender as soon as possible, before your credit is seriously damaged. If it already is, you won’t have as much negotiating power. Most new programs aimed to help people avoid foreclosure are targeted to those who aren’t dealing with credit problems. Keep in mind that the further behind you get on your mortgage payments, the more difficult it will be to reinstate the loan, and the more likely that you’ll end up losing your house.

Speak to a HUD-Approved Housing Counselor

A housing counselor, provided by the U.S. Department of Housing and Urban Development, can help you understand your options and the law. They can also help you get your finances organized and even represent you in the negotiation process with your lender.

Consider Selling Assets for Cash and/or Getting a Second Job

If you have assets like jewelry, a second car, whole life insurance, etc. that can be sold for cash to help reinstate your loan, you may want to consider doing so. Think about what’s most important, for example, having a roof over your head and occasionally having to walk and perhaps use public transportation or losing your house altogether. If you don’t have anything you can sell, think about getting a second job. Either effort demonstrates to your lender that you’re willing to do what it takes to stay in your home.

Don’t Pay a Company to Negotiate with Your Lender

There are for-profit companies out there who are likely to contact you with a promise to negotiate with your lender, for a hefty fee. While they may be legitimate, don’t fall for it. The money that you give them could be going towards your mortgage payments. Why would you do that when you could get help through a HUD-approved housing counselor, which, as mentioned, is free.

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