Today people have been increasingly struggling to keep up with their mortgage payments. Even if you’re not one of them, you may know someone facing a home foreclosure. With almost every state declaring a foreclosure crisis, knowing how to fight and win against home foreclosure is essential.
Foreclosure is not something that happens overnight. Many resources are available to help you keep your home and avoid losing your home. Several steps must be taken in most cases before a dwelling is foreclosed on. This blog post will explore some things you can do to prevent foreclosure and keep your home.
Be Aware of the Legal Process –
To carry out a foreclosure on a home, the lender must follow specific legal procedures. These legal procedures may vary from state to state, so it’s essential to be familiar with the laws in your state. In many cases, the borrower is given time to catch up on the missed payments. If you’re facing financial strain, staying calm and taking action is essential. Many resources are available to help you keep your home.
Get Help from a HUD-Approved Housing Counselor –
If you’re struggling to keep up with your mortgage payments, you should immediately seek help from a HUD-approved housing counselor. These counselors are trained and experienced in helping people keep their homes. They can help you understand the process, work out a payment plan with your lender, and provide other assistance. If you’re struggling, don’t wait until you’re in danger of losing your property, to get help. Today, certified organizations can provide you with free or low-cost counseling and education on how to avoid foreclosure.
Know Your Rights
Each state has its laws governing financial and property accusation processes. It’s important to know your rights, so that you can protect yourself throughout the process. Some states have what are known as “right to cure” laws, which give borrowers time to catch up on their payments before the process can begin. Other states have “right to reinstate” laws, which allow the borrower to bring their loan current before the sale of the home.
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Use the Law to Your Advantage
If you know your rights and use the law to your advantage, you can often stall or even stop the process. This will give you a lot more time to work out a payment plan with your lender or find another way to keep your home.
Here are a few examples of how you can use the law to your advantage:
Temporary Restraining Order –
In some states, you can file for a temporary restraining order to stop foreclosure. This is usually only an option if you have already filed for bankruptcy. If you have, ask your bankruptcy attorney about this process.
Automatic Stay –
If you file for bankruptcy, an automatic stay goes into effect. This stops all collection activity against you, including foreclosure. An automatic stay remains in effect until your bankruptcy case is over or the judge lifts the stay.
Special Forbearance –
If you’re a homeowner facing financial hardship, you may be eligible for special forbearance from your mortgage lender. This will temporarily lower or suspend your mortgage payments for a set period. It’s important to note that interest will continue to accrue during this time. Foreclosure prevention counseling is very important in such situations.
Loan Modification –
A good loan modification changes the terms of your mortgage loan to make it more affordable. This could involve reducing the interest rate, extending the loan duration, or changing the type of loan. Reach out to your mortgage provider and ask about a loan modification agreement.
Negotiate with Your Lender –
If you can’t afford your mortgage, don’t just stop paying and hope for the best. This will only make things worse. Instead, reach out to your lender and try to negotiate a new payment plan. Be honest about your financial situation and explain why you’re struggling to make payments. A well-articulated negotiation can save you a lot of money and stress in the long run.
If you’re facing foreclosure, know that you have options. There are many things you can do to keep your home and avoid loss with the correct information and assistance. Get help from a HUD-approved housing counseling agency such as AdvantageCCS, and use the law to your advantage. Lastly, don’t be afraid to negotiate with your lender. It can’t hurt to ask for help!