Suggestions for Avoiding Foreclosure

Foreclosure is an epidemic plaguing the United States housing market, but with a little insight and forethought, many individuals can completely avoid this process.   Regardless of an individual’s current financial status and default amount on a mortgage, the following suggestions are all applicable steps in avoiding the loss of homes and other property due to foreclosure.   Typically, a lender will notify borrowers when their mortgage payments are behind and eventually fall into default.   Ignoring these attempts to communicate from banks and other lending institutions is not a feasible solution to avoid foreclosure, as the process is a judicial proceeding in most instances, which will occur with or without homeowner’s willingness to participate.   Realistically though, most individuals are well aware of their current financial failings, and in turn, are very eager to do anything that will help alleviate these concerns.   Following the suggestions stated below are the proper steps to take when trying to avoid foreclosure.

Stay in Communication with Lenders

Staying in communication with lenders before and during foreclosure proceedings is one of the best resources of information in how to prevent foreclosure itself or maximize the foreclosure value of a home or property.   The suggestions for garnering information surrounding a mortgage and the lender’s intention to lien on a home or property include:

  • Contacting lenders personally and allow them to offer financial assistance and foreclosure prevention alternatives
  • Avoiding ignoring impending mortgage payments that are overdue or in default, even if payment is not possible, there are remedies available through lenders, but communication is key
  • Reading and responding to all mailed and electronic notices from lenders regarding mortgage accounts that are behind or facing foreclosure.   Failure to acknowledge or respond to notices from a lender is not a permissible defense in the judicial proceedings of foreclosure
  • Forwarding all information to an attorney, that will assist and represent individuals looking to avoid foreclosure on their homes and property

 

Understand and Exercise Mortgage Rights and Options

A major asset in any foreclosure case is the counsel of a real estate attorney.   An attorney can truly give clients consummate knowledge regarding their rights as homeowners in a given state.   Most foreclosure proceedings will occur in a single state jurisdiction, and each state possess unique and differing foreclosure laws, which a practicing real estate attorney will be well informed about.   Individuals facing foreclosure must arm themselves with as much knowledge and factually based information regarding foreclosure laws and regulations prior to exercising any of their rights and options in foreclosure matters.

Some suggestions and pertinent pieces of information to be reviewed prior to taking any foreclosure prevention action include:

  • Reviewing all mortgage agreements and documents
  • Understanding foreclosure laws in a respective state
  • Being aware of all pertinent dates and timelines regarding foreclosure law in a given state
  • Analyzing all loss mitigation, or foreclosure prevention, options available through lenders and state laws and regulations
  • Consulting not only a real estate attorney, but also government housing counsel offices in a given state or city

Steps to Avoiding Foreclosure on a Personal Level

At a personal level, many individuals can make wiser financial decisions that will potentially allow them to meet the terms of their mortgage loan agreements and prevent foreclosure proceedings.   Items such as curbing excess spending, eliminating excess spending are all salient solutions when it comes to avoiding foreclosure.   Other options on that people can pursue on a personal level to avoid foreclosure include:

  • Avoid repaying unsecured debts, such as credit cards until outstanding secured mortgage debts are satisfied and manageable
  • Liquidate other assets to satisfy defaulted mortgage debts
  • Make and document efforts to bring in more income, which can be used in convincing lenders to extend repayment time periods before making lien claims on a home or property

Do Not Become an Unnecessary Victim of Foreclosure

There are so many aforementioned, credible options for tackling the tough prospect of trying to avoid home foreclosure that most consumers will find it unnecessary to seek assistance elsewhere.   However, there are a number of foreclosure scams existing today that seek to prey on individuals who are ignorant about the foreclosure process.   Many of these firms will take large fees to do what a real estate attorney can do much more effectively.   Additionally, some of the even more scrupulous foreclosure firms will deceive consumers into signing away their ownership of a home or property.   Having an expert real estate attorney in all foreclosure transactions is essential to prevent the occurrence of these foreclosure scams and frauds.

 

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