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.