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Has your financial situation turned topsy- turvy due to one of the following reasons? 1) Divorce 2) Loss of Job 3) Unexpected Medical Expenses 4) Increase in Tax Is paying your monthly bills becoming a Herculean task? Then you should first know how gradually this process of foreclosure takes place before moving on to the tips to protection foreclosure: Step 1: When the first month payment is missed, the lender contacts you through a letter or a telephone call. A house counselor can help in this situation. Step 2: Second month, you receive continuous calls from the lender. Try not to avoid the calls, instead explain your situation to the lender. The house counselor might still be able to help. Step 3: After the third month, you receive a demand letter stating how much balance you will have to pay in a specified period. It is better to somehow manage and pay the amount within that period. Else it means that you’re nearing the danger zone where the foreclosure steps would start very soon. Avoiding foreclosure is not an impossible scenario. It can be achieved from little effort on your side. First of all, learn to respond to all calls and letters of the lender. Facing the problem can solve half your worries than running away from it. There are many websites that help in keeping you updated about your rights as a borrower. Know every one of them to protect your property. This is termed as ‘loss mitigation’. It’s important to be updated with your loan contract. Learn what is written in it. Contact the Government office of your state handling such issues to know the time frame in your particular state as it varies. There are bodies appointed by the government that offers housing counselors at free or very low cost. They help you understand the laws and work sincerely on how avoid foreclosure. Your assets can come handy in this situation. Jewels, cars, lands, insurance policies, bonds etc can be converted into cash, so that you can avoid losing your most important property. You could also talk to your lender about adding a back up amount to your existing loan and adding the missed out payments to that. If your contract allows that, then it could be a good solution. You could also spread the entire amount of missed payment to the whole loan term by dividing it equally and promise to pay regularly there after. For this you need to be sure that you would be able to get sufficient income. Be on guard for foreclosure scams. Be sure that your property is not being lost for no reason. If you have any doubts regarding this possibility, do not be hesitant to immediately consult a legal authority to clarify them. It is always better to prioritize and plan your spending so that such mishaps do not occur. However if they do occur, take the right steps and solve the problem with the confidence that this too shall pass. About the Author Mike Greaves is a self-made entrepreneur, a well known travel consultant and internet marketer. Over the years he has traveled across the world and has numerous writings credited to his name in many renowned publications. His areas of writing include travel experiences including reviews of luxury resort spa and he has also gained expertise in area of default foreclosure, foreclosure steps and subprime foreclosure.
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protection foreclosure, foreclosure steps, how avoid foreclosure,
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