Avoiding Foreclosure and Foreclosure Fraud
If you are someone who is headed towards foreclosure and think that is your only option, STOP, take a deep breath. And read on.
1. Talk with your lender. Most lenders DO NOT want to foreclose on your home! In fact, because it is such a hassle and an expense, they would rather avoid it all together.
2. Call a local real estate agent with a reputation in your community. There are multiple sources for help that a professional, ethical REALTOR would be aware of. And most would be more than willing to help you devise a plan that could help save your home, or at the very least, your equity.
3. There are agencies that may be able to help you get caught up. But beware! Make sure this is a licensed, reputable agency! Not just someone who has contacted you or knocked on your door. The U.S. Department of Housing and Urban Development maintains a list of HUD-approved counseling agencies.
4. Don't rule out the possibility of refinancing. Have your REALTOR refer you to a reputable mortgage loan officer to discuss the possibility of refinancing your current mortgage to a more affordable program.
5. Has your cost-of-living changed drastically? If you've experienced things such as unexpected medical costs, a loss of job, or decrease in wages, you may be able to qualify for a special forbearance. This is a new payment structure that will allow you to repay the lender within a certain time period.
Above all else, do not trust ANYONE who asks you to handle over your title, or promises you something for nothing. If it sounds too good to be true - IT IS. Ask for help from an ethical, professional, licensed, reputable real estate practitioner and agency. The last person you should deal with is some stranger who approaches you with an easy fix. Someone you don't know could take your title, your equity, and never be heard from again.
Read more about Real Estate Scams.
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