Every home owner should know how to prevent foreclosure because of the unexpected circumstances that wreak havoc on finances. Loss of a job, medical emergency, effects from divorce, and even an unreliable car can suddenly make it difficult to pay the mortgage.
Hi, my name is Kate Ford and I'm a retired mortgage broker. I understand life's unexpected circumstances can threaten foreclosure with little warning. Let me show you how to avoid foreclosure during an unexpected crisis.
During robust real estate markets, home values swiftly escalate. The fear of missing out entices many home buyers to reach beyond what they know they can afford in a mortgage payment.
Even so, most home owners are able to pay their mortgages on time. But all it takes is a little adversity to tip the balance. Finances can spiral out of control quickly with a budget that is overly stretched.
So, pay close attention to what I'm about to say. By following these 9 simple steps, you can prevent foreclosure.
1 - Contact your lender right away for foreclosure help. It's easy to put off the mortgage payment when you feel overloaded. Delaying will only increase your stress. Imagine how much better you'll feel if you take action.
Tip: Learn how to locate your lender to stop mortgage foreclosure.
2 - Explain your circumstances to your lender. Tell your mortgage company you are experiencing an unexpected crisis but you want to avoid foreclosure. When you make it clear you're not ignoring your responsibilities, the lender will be more helpful.
Tip: Call your mortgage company during early business hours. You'll avoid the stress of being placed on hold for too long.
3 - Find extra cash. A mortgage lender wants to know your crisis is temporary. Extra cash is always a good solution to bring mortgage payments current. Could you sell an extra car? Can you borrow against a 401k?
Tip: Ask the Human Resource department at work if your 401k plan allows loans.
4 - Additional income helps prevent foreclosure. My neighbor reactivated her life guard certificate to teach swim lessons on the weekends. Some home owners take 2nd jobs until they get current on mortgage payments.
Tip: Make a list of your past employers and update your resume.
5 - Rearrange your budget to prioritize your mortgage payment. Home owners make a common mistake when they decide to allocate money for house payments to smaller bills first. Always pay your mortgage first.
Tip: Lower your credit card payments to the minimum allowed until you get through the crisis.
6 - Reduce expenses. It's time for a debt reduction plan. Go through your budget and see what you can do without. Then use the extra cash to bring mortgage payments current.
Tip: Put off unnecessary purchases. It's worth skipping a shopping spree to save your home and prevent foreclosure.
7 - Share your debt reduction plan with your lender. Your mortgage company will be more willing to help you save your home if they know your plan to get current on mortgage payments.
Tip: Put your plan in writing. If you get flustered on the phone, you won't be caught off guard.
8 - Ask your lender how they advise home owners to prevent foreclosure. Use your plan as incentive to give your mortgage lender patience.
Tip: Here's a list of additional foreclosure help alternatives to discuss with your lender.
9 - Get your mortgage lender's response in writing. Never rely on verbal communication alone.
Tip: Get the person's name and direct phone number in case you need to call them back.
You've now learned the secrets that benefited my customers for over 20 years. By following these 9 simple steps you have the tools to prevent foreclosure.
You have the power to make a deal with your mortgage company. Learn how lenders are negotiating with home owners to stop foreclosure.
After all, it's your home and your mortgage. No one cares more about it than you.
Haven't found what you're looking for? Here's the solution! Go ahead and Ask Kate for answers.
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