Six General Rules to Prevent Foreclosure
According and complying with federal regulations, most states have created and designed their own programs of education, awareness and caution for mortgage borrowers and homeowners alike to prevent them and help them to stop foreclosure actions against them.
The awareness efforts from most of the state governments have created indeed an increased awareness on the steps to take to prevent foreclosure actions against them from their mortgage lending companies.
Nonetheless and regardless of the means that the state or local governments use to make their message known, the steps to make and create awareness and prevention against foreclosure remain the same.
The six basic steps to preventing a foreclosure:
Do not wait
As a homeowner and a mortgage borrower it is important that you are able to recognize and accept when you are having problems with your income. It could be that you have an important event, a sudden illness or even a death in your family that you need to cover and pay for; it is understandable and it is a part of life.
Most homeowners believe that approaching their mortgage company representatives with such problems gives the impression that they are faulty or that they will not get the attention or assistance that they deserve in the future. This is not true, what is true is that the borrower who fails to recognize his or her problems and hides the emergency financial situation not only risks the property and temps the foreclosure ghost to arrive, but most likely will be denied the assistance when finally he or she asks for it.
Answer every communication
When a borrower is falling behind (and some companies take it upon themselves to issue reminders) companies seek to get in touch with their borrowers, first to make sure that there is no problem and second to find out when they will be paid. Failure to answer their communications will be regarded as “hiding” not “I am busy”.
Be organized, descriptive and thorough
When you explain your situation, do not divagate. There is information that is pertinent to your situation and information that it is not pertinent; the mortgage lending company is interested in their payment, they do not care about your feelings or the feelings of anyone involved in your case.
Be concrete. What is it that you need and why, as much as rationally possible, be specific as to much time do you need to overcome whatever problem it is that you have and that is causing you to fall behind on your mortgage loan. If you cannot give an exact date, state an approximate and be constant with your communication.
Keep all your papers in one place
This does not apply only to the papers on the mortgage loan, but also to any and all documents pertaining your financial status. Credit card reports, bank statements will be necessary if you apply for help or leniency from your mortgage lending company.
Keep the payments on the delinquent payments and costs related to the foreclosure
While this might be subject to the analysis of each case in itself, keeping a volunteering attitude, offering to pay for the delinquent payments (those that you are late to do) plus the costs and expenses of the foreclosure procedure might be enough to keep the foreclosure from completing.
Once again, it depends on each case, since it might be that you fell delinquent because you require to use the money in some other urgent or pressing matter. Talk to a HUD representative, a real estate lawyer or agent that you trust for additional guidance before making any decision on this particular point.
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