How to Prevent Foreclosure by Advocacy

Develop a strategy to prevent foreclosure.

Receiving notice that your mortgage lender plans to file a foreclosure case against you is devastating news. If the real estate at stake is your home, the situation is even more challenging on many different levels. The fact is that merely because you receive notice of a potential foreclosure does not mean that you have to throw in the towel and give up all hope. You have the ability to take action to protect your property, including your home. One course to take to prevent foreclosure is to become a solid, educated advocate for yourself.

Things You'll Need

• Written agreement with mortgage lender

Instructions

1. List all of your options. Do not merely rattle them off in your mind. Make a physical list of all of the different options available to prevent a bankruptcy. These include renegotiating your existing mortgage loan or seeking a loan discount to provide for a short sale. Your trump card is understanding that you can block foreclosure proceedings by filing for bankruptcy.

2. Schedule a face-to-face meeting with a representative from your mortgage lender. Understanding that many lenders are located out of state in this day and age, you may need to settle for a pre-planned conference call.

3. Attend or appear for the scheduled meeting with an agent of your mortgage lender.

4. Explain your position regarding the prospective foreclosure, delineating what options you suggest. Ideally, the best course is renegotiating your loan in such a manner to bring the account current. Adjusting downward your monthly payment is something to include in the presentation as well.

5. Advise your lender that your only option if they decline to work out an agreement with you short of pursuing a foreclosure against you is bankruptcy. Most mortgage lenders understand that renegotiating your loan is less costly and time consuming for them than facing a protracted bankruptcy case. Additionally, if the real estate is your residence, you possess an added level of bankruptcy protection in the form of a homestead exemption.

6. Confirm any agreement you reach with the mortgage lender in a written document. Prepare this immediately after negotiations with the lender. Ensure that both you and the representative from the mortgage lender sign the document.

References

• "23 Legal Defenses to Foreclosure: How to Beat the Bank"; Troy Doucet; 2008
• Homeowner Resources
• National Consumer Law Center

Resources

• U.S. Department of Housing and Urban Development: Avoiding Foreclosure Resources