If you are significantly behind on your mortgage payments, then your lender may be threatening you with foreclosure. Foreclosure is the legal repossession of your home by the lender. The home is then sold at auction to hopefully recoup the costs of the loan as well as any behind payments.
If the property sells for less than what you owe, the bank could use other legal actions against you to collect the remaining balance. Therefore, a foreclosure is a very serious situation. Luckily, you have options and there are ways you can save your home from foreclosure, but you have to act fast.
Do Not Avoid It
If you are behind on payments, be proactive. Talk with your lender and do not ignore the problem. Also, try to make up payments where you can if the lender will allow you to make partial payments. In some cases a lender may reinstate the loan if you show you are able to catch up. But, ignoring or avoiding it tells the lender you are not interested in saving your loan.
Respond to Lender Correspondence
When you receive the first notices from your lender, they will discuss how you can prevent foreclosure. Do not ignore these options; often the lender is reaching out to you trying to help you avoid foreclosure. But, ignoring these letters or not responding to lender correspondence will only hurt you if your foreclosure goes to court.
You Have Rights
Even if you are behind on your payments, you have rights when you cannot make the payments. There are foreclosure laws and timeframes listed by state, meaning your lender cannot foreclose until you are so many days past due.
Consider Selling Assets
While it is not ideal, you may be able to sell some of your assets to pay back your defaulted payments and reinstate your loan. Lenders want their money; therefore, as long as you can show you are putting forth a good faith effort to catch up on the late payments, then they may be willing to reinstate the loan rather than go through the foreclosure process.
Ask for a Loan Modification
Your lender may approve a loan modification to help lower your payments, interest rate, and catch up on the past due payments. Ask your lender if you qualify for a loan modification. If they deny your requests, then you may be able to use this in court.
Don’t Fall for the Scams
When you are down, there are companies that take advantage. Companies will contact you saying they can save your home from foreclosure, but these are often scams. Only take foreclosure advice from an attorney, real estate agent or an approved HUD counselor.
Facing Foreclosure? Hire an Attorney
If you are facing foreclosure, hire an attorney to help you save your home. An attorney can explore your options and possibly prevent your home from being foreclosed on by the lender. West Palm Beach Foreclosure Attorneys at the Law Office of Kelley & Fulton want to help you keep your home. Call us today for a no obligation consultation by dialing 561-491-1200.