5 Things You Should do if You Are Facing Foreclosure on Your Home
Facing foreclosure is something nobody wishes to experience. Whether you believe you will be imminently receiving a foreclosure or the process has already started, there are steps to be taken that can resolve the issue – or at least provide you with a better alternative.
1. Speak with Your Lender
Many people facing foreclosure make the mistake of avoiding all forms of contact with their lender. It’s understandable why some would seek to slow the process by any means necessary, but this will not help the situation at all.
Remember – the foreclosure process takes time. Even receiving a notice of default doesn’t mean it’s a foregone conclusion, so the best step you can take is to open a strong line of communication with your mortgage provider.
Speak with your lender, tell them that you are aware of the circumstances of defaulting and that you want to do everything you can to save your home. Talk about what options you have, what steps can be taken to save your home, or even what to do if you cannot avoid the foreclosure.
2. Keep a Record of Everything
Be sure to keep a hold of every piece of data regarding the foreclosure. This includes letters, phone calls, notices; anything that relates to the foreclosure process. Most of this should begin to arrive 30 days after your last mortgage payment, so don’t make the mistake of throwing it away and ignoring it as it could be very helpful.
Also, start to review your previous records, such as the mortgage documents, as they will likely include information regarding the foreclosure process with your specific lender. It should give you an idea of what to expect, so there are fewer surprises down the line.
3. Find Out Your Legal Rights
Every state has different foreclosure laws, so you definitely want to know what your own state’s laws and processes are. For instance, foreclosure timelines can vary greatly from state to state, while some include a grace period that could be used to reverse the process, so you will want to get all the answers you possibly can.
4. Contact a Foreclosure Counselor
You should have already contacted your mortgage lender at this point, but there are other people that should be spoken to when facing foreclosure.
For example, you will want to speak with a foreclosure avoidance counselor to get all the necessary information regarding state foreclosure laws, possible alternatives, and help organizing all your important financial documents.
Be sure to notify your lender that you are working with a foreclosure counselor, as it will highlight your intention to rectify the issue. Also, counselors can help to avoid losing your home by representing you during the negotiation process with your lender.
5. Have a Back-Up Plan
The sad truth is that many people that face foreclosure will lose their home. While it is uncomfortable to think about, you really should consider devising a back-up plan for the worst-case scenario.
Whether it’s moving in with a family or friend or looking for affordable rent options, you certainly want to have an idea of what you will be doing should you lose your home. It may be difficult, but you will be far better off by planning for the worst scenario, even if it never comes to fruition.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at (951) 274-9501 or (951) 274-9501.