Choosing To Change Your Finances

Facing Foreclosure? 5 Things To Do Before You Get Served The Foreclosure Notice

by Luis Hawkins

If you're facing the foreclosure of your home, don't give up. Foreclosure can be a stressful situation, but there are still things you can do. You might think you're fighting a losing battle. That's not the case. Until you're given the order to vacate your home, there are still things you can do to avoid foreclosure. If you're not sure what to do to save your home, read the list below. Here are some steps that will help you through the process. 

Talk to Your Mortgage Lender

If you're at risk of having your home go into foreclosure, don't stop talking to the lender. Many people cut off communication with the lender as soon as they fall behind on payments. That's one of the worst things you can do. You may be behind on your payments, but there are ways your lender can help you out of the situation. Your lender can provide options like loan forbearance or loan modification. Talk to your lender before your home goes into foreclosure.   

Look Into Assistance Programs

If you've fallen behind on your payments, now's the time to look into government assistance programs. The government has assistance programs that can help you avoid foreclosure. You might qualify for a payment assistance program that will help you get back on your feet. You may also qualify for a government home loan refinance program. This type of program helps you refinance your home loan into a more affordable loan. 

Sign Up for Housing Counseling

If you haven't signed up for housing counseling, do that right away. Housing counseling can help you out in a couple of ways. First, home counseling can help you understand your options. Loan counselors can also help you negotiate better loan terms through your lender. That way, you can avoid foreclosure. 

Understand the Foreclosure Laws

If your lender is threatening you with foreclosure, it's time to learn about the laws in your state. Each state has its own laws regarding foreclosure. Depending on where you live, you might be able to stay in your home longer. Or, the lender may need to go through other procedures before they can foreclose on your home. Learn about the foreclosure laws in your state. This information will help you protect your right to stay in your home.  

Choose a Pre-Foreclosure Home Sale

If you've run out of options, and you're facing foreclosure, it's time to consider a pre-foreclosure home sale. Selling your home will allow you to avoid the foreclosure process. A pre-foreclosure sale may also allow you to profit from some of the equity in your home.

To learn more about foreclosure, contact a professional near you.