10 Things Not To Do If You Want To Stop Foreclosure on Your Home
Posted on February 25, 2009
Filed Under Foreclosed Homes |
If people took necessary steps before hand and knew how to stop foreclosure, very few people would lose their homes. There are a certain guidelines that should be followed, if you wish to stop a foreclosure. These could come handy to stop the foreclosure of your home way in advance or just before the auction.
1. Do NOT ignore savings
Many people opt to save, to be prepared for any kind of emergency. Some emergency or the other always stares at us in the face every other day, very often, when we least expect it. When it comes to homeowners, they ought to have at least six months of mortgage payments kept aside as savings.
2. Do NOT get caught without a Home Equity Line of Credit in place.
More than 90% foreclosures might have been delayed or prevented, if home equity lines of credit were activated before hand. Setting up of a credit line at no extra cost can lock rates as low as 4%. There are cases when you dont access the line, but are yet asked to pay for it. When such emergencies occur, it could get hard at times to acquire a loan. This is when a home equity credit line comes handy. You at least have access to money whenever you need it.
3. Do NOT miss a mortgage payment.
Skipping mortgage payments is a serious issue, more serious than missing a credit card or utility payment. Do not spend frivolously, neglect bill payments or spend the savings before the mortgage obligation.
4. Do NOT fail to ask for help.
When you feel that it is high time you ask for assistance from someone, do so. Feeling embarrassed or scared that the request for money would be turned down would only increase the possibilities of losing your home to foreclosure. Usually people do not admit that they have a foreclosure coming up.
5. Do NOT ignore the lender.
Many people harbor wrong notions about moneylenders. However, in times when you are left in the lurch, the moneylenders are the first to come to your rescue. In fact, moneylenders appreciate the individuals initiative to contact. They need to know the reason for the financial emergency and the securities in place.
6. Do NOT overlook the fact that you have a problem.
If you ignore something, it does not just go away. Whether it pertains to daily life or a major financial upheaval, problems do arise at the least expected times. If you are under the wrong impression that the problems will pass by if you dont pay any heed to them, you are wrong.
7. Do NOT be under this impression that you dont have options
There are options to foreclosure woes. You could keep your house and stop the foreclosure. However, timely action is the key, the sooner you act upon this the better.
8. Do NOT spend what money you have on other bills.
Many end up using the minimum resources they have in paying other bills. Do not ignore foreclosure. There could be a time when you will need the money to save your house.
9. Do NOT stop making payments.
Until and unless the bank decides not to take any more payments from you, you should continue with the repayment.
10. Do NOT miss bankruptcy-filing deadlines.
If you file Chapter 13 Bankruptcy in time, you can stop a foreclosure before it gets you. If a person fails to make any payments, the creditors have no option but to initiate the foreclosure.
Kris Koonar
http://www.articlesbase.com/non-fiction-articles/10-things-not-to-do-if-you-want-to-stop-foreclosure-on-your-home-119878.html
Comments
5 Responses to “10 Things Not To Do If You Want To Stop Foreclosure on Your Home”
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Are the companies that advertise about stopping home foreclosures really worth looking into?
I have seen many ads on the web stating that they can help with foreclosures. I have a friend facing foreclosure - and may soon be myself if things don't pick up - and she is considering replying to one of these ads
under NO circumstances. IF you need help, get hold of me
and I will tutor you for free
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RE broker
The companies are of SOME help, but only if you do not feel to qualified to speak with your lender on your own. These companies cannot STOP a home foreclosure, but they can assist in negotiating with your lender for more favorable terms, loan extensions, etc. You can do the same by yourself for free.
The decision whether or not to foreclose always remains with the lender (unless some law is enacted which might put a temporary moratorium on foreclosures)
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You have to be VERY careful in dealing with companies that are making these offers. Especially on the internet. Most of these have turned out to be scams.
Do NOT sign any papers turning your property over to anyone.
Your friend should try contacting her lender's loss mitigation division. The lender may have another name for the department that she should contact.
If you think you may soon be in the same situation, you may want to begin exploring your options now.
You may have some local, reputable sources for help. A credit counseling company, a lawyer who handles bankruptcy cases. Legal aid? Look locally before you and your friend take on the internet to try and find relief.
Good luck
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TX REALTOR
I am speaking from experience when I say this- talk to your lender first. Believe it or not they're not bad people. I had a renter gone bad and put me behind nearly two months. They were able to set up a repayment plan. It doesn't work for some but if you want to keep your home, its worth the hassle for a little while. I am in the process of modifying my mortgage– I refused to go through someone considering what they do I can pretty much do on my own.
Call the bank first– they don't want your home!!! They'll help you.
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