Saturday, April 4, 2009

Steps to prevent foreclosure from happening to you

By Ludo Wiegers

Foreclosure can be pretty alarming and intimidating if you're not sure what's going to happen next. But if you are aware of what the foreclosure process looks like, it's a lot more controllable. That's why you need to take the time to learn the foreclosure process and save your family from mortgage foreclosure.

The first past due payment is also the first step on the path to mortgage foreclosure. The lender will send you a notice about the fact that you're behind in payments. If it's at all possible, pay the past due bill. But if you don't pay the past due payment, the mortgage company will start calling. If you talk to them, they will officially announce to you that you are in default. If this looks like your situation, get in contact with your lender.

Mortgage loan modification may still be an alternative if you talk with your lender in time. Going through this process can be one of the best ways to avoid mortgage foreclosure. Most lenders will delay the foreclosure until three months of past due payments before they start foreclosure. It can take a little more time, but if you keep missing payments you will get a foreclosure notice eventually.

When that foreclosure notice hits your welcome mat, you're in trouble. There will be a court hearing about your case, but you will lose because you're offending the terms of your loan contract. The bank acquires the right to sell your house through an auction when the court hearing is finished. When the auction process begins, you only have a couple of days to leave your home. If you do not leave, you will be forced out by the law.

Talk with your lender before things get to this point. Mortgage loan modification is frequently a good opportunity to spare your house and family from mortgage foreclosue by renegotiating terms with your lender. Read up on the mortgage loan modification procedures and make sure you fill out all the paperwork to the best of your abilities.

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2 comments:

  1. Great tips. One of my favorites would be loan modification--it could be a lifesaver for many foreclosure situations. And the most obvious but often neglected, would be to talk to your lender. Let them work something out before running away scare. In stuff like these, honesty is usually the best policy.

    - Imee

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  2. Hi,

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    Foreclosu-re.info Team

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