If you’re facing foreclosure on your home, you may not know exactly where to turn or what to do. Here, we’ll offer a few tips to help you pick up the pieces during this rough time and get on your way to financial recovery.
Be proactive. There are a variety of ways your lender can help you salvage your home if you are in danger of foreclosure, but you have to ask! You should contact them following your first missed payment if you suspect you will have trouble making future payments due to unforeseen circumstances. If possible, stay current on homeowner’s insurance and property taxes. Next, contact the HUD-approved Foreclosure Avoidance Counselor in your area.
Be honest. If you are trying to avoid telling friends and family the truth about your foreclosure, you may be causing yourself undue stress. Dodging the truth can take its toll on you. Not to mention, you aren’t allowing yourself to take advantage of the support and advice they may be able to offer. While it is certainly difficult, if you can be honest and up-front with those that are close to you, you will have an easier time through this process. Foreclosure is more common than you may initially think. In fact, every three months, 250,000 new families enter into foreclosure according to the Mortgage Bankers Association.
Get prepared. After you have exhausted every other avenue and feel certain that foreclosure is your only option, it’s time to get prepared. Although the entire process may take anywhere from several months to a year, start getting prepared now. It will make things less stressful once things begin moving forward.
- Where will you go? If you are facing foreclosure, purchasing a new home or even renting may not be an option because of the credit implications.
- Will you need storage? If you’re downsizing in the interim, you can either sell your furniture or rent a secure storage facility. This will depend on your needs in the future and whether or not you will need it again.
- School considerations. If you have children and will be moving during the normal school year, you’ll need to be careful not to move them out of their current school district or be sure you can plan in advance for transportation back and forth each day.
Get educated. Each state is different in the proceedings of foreclosure. Knowing the laws in your area will help you prepare for what you should expect, as well as take advantage of any programs that are available. Take the time to become familiar with the laws in your area here: www.foreclosurelaw.org.
Before you arrive at foreclosure as your only option, take note of the many offerings and programs available from your state and your lender. Many programs may be able to offer relief and assistance to you. For example, Making Home Affordable is an official program of the US Departments of the Treasury & Housing and Urban Development that offers assistance to struggling homeowners. Learn more here: www.makinghomeaffordable.gov.
