Tips For How to Avoid Foreclosure
When life is running smoothly, managing household finances and making monthly mortgage payments are just another part of the regular routine of being a homeowner. Yet, regardless of how well we’ve honed our money management skills; an unexpected crisis or hardship can sometimes impact our finances. Life events, such as prolonged illness, job loss, and the break-up of a marriage can, and sometimes do, occur in many people’s lives. When this happens, making the monthly mortgage payment often can become difficult—if not impossible.
You Can Protect Your Home
By knowing where to turn for help and learning about what you can do, it’s often possible to avoid foreclosure and protect that valuable asset you call "home."
If you need help, contact your lender immediately -- If you fall behind in making your mortgage payments, contact your lender immediately. The sooner you contact your lender regarding any financial difficulty you may be experiencing, the more options potentially may be available. When you call, you’ll be asked to explain your situation and provide current financial information such as monthly income and expenses.
Depending on the specific situation and type of loan you accepted, a lender may be able to offer one or more of the following options, including:
- Temporarily delaying payments (also known as “Forbearance”)
- Recovering from missed payments (also known as “Repayment Plan”)
- Restructuring the loan (also known as “Modification”)
- Refinancing the home loan
- When staying is not an option
- Consult your tax advisor before making any decisions
- Last edited November 13 2008
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