How to Stop a Home Foreclosure With Delinquent Accounts
A delinquent account refers to a debt account that you haven't paid by the due date. Accounts that can become delinquent include mortgage, utility bills and credit cards. If you have several delinquent accounts, you may find it difficult to afford your mortgage payments. Your lender may send you a notice regarding your delinquency, warning you of the possibility of a foreclosure. If you act quickly, you may still be able to stop the foreclosure.
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Instructions
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Read all the mail from your mortgage lender. It usually includes foreclosure prevention options that can help you understand your situation. It may seem easier to ignore these letters, but not opening your mail will not save you from foreclosure.
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Check your mortgage loan documents to find out what your lender may do if you continue to miss your payments. Such documents may have details on foreclosure laws and timeframes.
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Review your finances and determine if you can raise your income or cut your spending to make your mortgage payments. Calculate the value of your assets and sell them for cash to help pay the delinquent accounts with the highest interest rates and the delinquent mortgage loan amount. Even if you still can't afford your mortgage, you can use documents relating to these efforts to show your lender that you are willing to make sacrifices to stop the foreclosure.
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Contact a housing counseling agency for advice. If you provide the counselor with the details of your situation, the counselor can provide you with possible solutions. The U.S. Department of Housing and Urban Development and NeighborWorks America help fund these housing counseling agencies. You don't have to pay anything for the counseling services provided by these non-profit agencies.
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Contact your lender to talk about your options. Foreclosure costs lenders time, effort and money. Lenders are often willing to work with you if you are facing financial difficulties. Before talking to your lender, prepare several documents to help your lender understand your situation. You may need your mortgage account number, income documents and household expense documents. Some options your lender may offer include modification of your loan terms, claim advance from your mortgage guarantor, a repayment plan to catch up with your delinquent amount and forbearance.
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Tips & Warnings
Don't pay for foreclosure counseling. Private companies may charge you fees for services that HUD-approved housing counselors provide for free.
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