Avoiding Foreclosure

According to Wikipedia, foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". In other words, if you don’t pay your mortgage, the bank could take your home away from you!

Foreclosure could seriously jeopardize your credit and should be avoided at all costs. Therefore, it is essential that you pay your mortgage on time. Should you fall behind in your payments for whatever reason, DO NOT ignore any letters you may get from your lender! They do not want to have to take possession of your home, but would rather see you making payments. Should you need to, however, contact your lender’s loan mitigation department right away and let them know of your financial situation. Depending on the type of loan you have, they may be in a position to help you.

Another option available to you is to call a HUD-approved housing counseling agency at 800-569-4287 to find the agency nearest you. These agencies offer a wealth of valuable information on resources available to you such as government agencies and community organizations that can help.

The following options may also be available to you.

Special Forebearance – If you are able to prove that you have had an increase in living expenses or a decrease in income, your lender may be able to get you a temporary reduction or suspension of mortgage payment.

Mortgage Modification – You may be able to refinance or extend the terms of you loan. This might lower the amount of your monthly payment.

Whether you can take advantage of these options or the many others available to you, whatever you do, DO NOT DO NOTHING! Your credit is at stake. Get help right away.

For more information, check out this website: http://www.hud.gov/