-
Step 1
Don't ignore the issue. The more payments you miss, the tougher it will be to reinstate the loan.
-
Step 2
Call or write to the lender as soon as you know there's a problem. Lenders don't want to have to foreclose--they don't want to have to put your loan in their "liabilities" portfolio.
-
Step 3
Open and respond carefully to every piece of mail from your lender.
-
Step 4
Know your mortgage rights. Find the loan documents you signed when you purchased the house. Learn about foreclosure laws and timeframes in your particular state. Each state has different timelines and regulations, and ignorance on your part could cost you.
-
Step 5
Understand what the options for prevention are. Loss mitigation techniques can be found at the Department of Housing and Urban Development (HUD) website -- www.hud.gov.
-
Step 6
Keep ever-so-careful track of your spending. This will make stopping foreclosure proceedings a family priority.
-
Step 7
Use your assets. Valuable cars, jewelry, boats, or other items can be sold for cash to help you get the loan up to date.
-
Step 8
Foreclosure recovery scams--forget it. Firms that say they can stop foreclosure right away if you sign over your legal rights are absurd and will actually have you renting out your own home...to yourself.
Comments
MrBrett said
on 9/30/2008 Good Stuff, thx