Consumer Foreclosure Tips: You Still Have Options

Many homeowners across the  metro area are facing foreclosure and don’t know what to do – it’s stressful, scary and often embarrassing,  but contrary to belief there are things that can be done.

If you are like millions of Americans and you are having trouble keeping up with your mortgage payments or your property has already gone into foreclosure, you have options. Foreclosure doesn’t happen overnight!

STAGE 1 – YOU ARE HAVING TROUBLE KEEPING UP WITH PAYMENTS AND/OR HAVE MISSED ONE OR MORE PAYMENTS

1)     Don’t ignore the problem! 

Open all letters and take all phone calls from your lender so that you have all of the information. Often the first notices have foreclosure prevention options but it is imperative to react immediately.

2)     Contact your lender immediately to discuss a loan modification program.

Explain your situation and what you have been doing to resolve it. There may still be time to make one payment to prevent yourself from falling three months behind.

3)     Contact a housing counseling agency toll free at (800) 569 - 4287.

Be sure to contact an HUD approved housing counselor to avoid scams.

STAGE 2 – YOU HAVE RECEIVED A FORECLOSURE NOTICE (MISSED 3 PAYMENTS OR MORE)

1)     Contact a housing counseling agency toll free at (800) 569 - 4287.

A housing counselor can still help and a loan modification may still be a possibility.

2)     Take phone calls from your lender.

Explain your situation and what you have been doing to resolve it. There may still be time to work something out with the lender. The time between first notice to sale varies by state but foreclosure is NOT the only option at this point. You have until the date of the sale to make arrangements with your lender or pay the total amount owed.

STAGE 3 – A PUBLIC TRUSTEE’S SALE DATE HAS BEEN SCHEDULED

1)     Contact a Realtor who Specializes in Short Sales (The experts at Short Sale ProLogic can provide a list of referrals)

After all other options have been explored, the next step is to sell your home in a short sale. A short sale is where the lender agrees to sell at a moderate loss rather than pursuing foreclosure.  Proceeds are turned over to the lender.

2)     Avoid Foreclosure at all Costs

Homeowners often don’t know that they will be responsible for all legal fees incurred by the lender in addition to losing their home and damaging their credit scores. Foreclosure is the WORST option and also an avoidable option. Contact a realtor to determine your short sale options.