Missing a mortgage payment is not the best situation to be in however it does happen. If you can regain the payment you won’t have any major issues with your credit score. However if you cannot recover the missed payment or worse cannot continue with covering your mortgage then you need to take action immediately
Steps you can take to avoid foreclosure:
Recognize the problem.
Do something the moment you realize you have a problem. Remember, the further behind you are on your payment, the harder for you to reinstate your loan.
Call your bank.
Your lender can give you options. These options help borrowers with temporary financial relief including reinstatement, forbearance, loan modification, and repayment plans. You need to ask your lender.
READ YOUR MAIL!!!
The foreclosure letter itself gives you direction of the actions you can take to avoid the foreclosure. Not reading or denying receiving the letter will not save you once the process actually goes to court.
Keep informed of your mortgage rights
Before you sign the mortgage papers, you are advised to read and understand everything the agreement says as they contain information about the possible actions that the lender may do if you have failed to make regular payments. Now that you arrived in this situation, read foreclosure laws in your state. Call the State Government Housing Office to know the timeframes.
Contact a HUD housing counselor
HUD-approved housing counselors help you know your options, your rights, and how to organize your finances. If you need assistance, housing counselors can also represent you during negotiations with your lender. The HUD or the Housing and Urban Development offers free or very-low cost housing counseling services nationwide.
Think about it before you spend it
Most Americans are still in knee-deep debt even if they fall above the median household income. The answer: they spend too much. What you should do is to prioritize your spending. After healthcare, your next top priority should be keeping your house. Let go of other expenses you can live without, less dinners out, less purchases you really don’t need.
Use your assets
Liquidate your assets if you have too. Do you have a third car?? A boat you only use a couple times a year?? How many televisions do you really need? Do you have free weekends?? Can you get another job? Do what you need to do to save your home.
Doc Schmyz has worked with investors all over the Canada and the US. He built a free website shares Real estate investing informationfor all over the US. Find real estate information by state
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