Are you struggling to pay your mortgage? You’re not alone. Typically foreclosures can take anywhere from three months to one year, depending on your actions. There are things you may be doing that will speed up the foreclosure process and lead to you losing your home even faster. Here we’ll discuss how you can avoid common things that lead to foreclosure.
1. Ignoring The Problem
First of all, ignoring the problem won’t make it go away. If you are struggling, it’s important to come up with a plan immediately. Even if it feels overwhelming and there’s no way out, there are resources to help you keep your home. One thing you can do is reach out to a HUD Housing Counselor to discuss your options.
2. Failing to Contact Your Lender Immediately
Many people facing foreclosure make the mistake of not contacting their lender. Your lender doesn’t want your house, and will often work with you to find a solution. Many lenders will offer repayment options or loan modification. Your lender may also offer a graceful exit from your home instead of foreclosure. As soon as you face a financial hardship, you can send your lender a hardship letter explaining your situation. This can help slow down the foreclosure process or solve the issue.
3. Disregarding Mail
Again, not opening mail won’t solve the problem. If you fail to open mail from your lender, you may be missing important information. If the problem is ignored, the foreclosure process will only be sped up. Instead, make sure to understand all communications that come your way.
4. Failing to Know Your Rights
Knowing your rights is essential to slowing down the foreclosure process. Foreclosure is not the only option. In some circumstances, a lawyer can help you contest a foreclosure. If for example, a lender didn’t provide proper notice, this may slow down the foreclosure process. Any mistakes made could be used in your favor. Additionally, sometimes a short sale is a better option that allows you to sell your home if you can no longer afford payments, and you owe more on your mortgage than your home is worth.
5. Falling for Foreclosure Recovery Scams
Unfortunately, scammers often target individuals facing foreclosure. Scammers will promise to save your home by lowering your payments for a fee. This is almost always a scam and promises are not kept. Sometimes you may even sign over the title of your home to the scammers unknowingly. Unfortunately, you then lose your home immediately.
6. Mismanaging Spending
If you prioritize paying other bills over paying your mortgage, you may be making a grave error. Sometimes declaring bankruptcy can slow the foreclosure process. Know your options and make sure you are making payments that will help save your home. Aside for essential medications and food, your mortgage payments should be your number one priority.
7. Not Using Your Assets
Have you looked into all avenues to save your home? It’s important to use any assets available to you including 401K. If a lender sees payments being made this can slow down the foreclosure process. Even if you show good faith, like getting a second job, the lender may look favorably upon this and delay your foreclosure.
Avoiding Foreclosure
Foreclosure is a painful and complicated process. However, there are tangible things you can do to remedy the situation. Knowledge is power, and ignoring the issue will only make it worse. Make sure to leverage all the resources available to you to slow down your foreclosure. Hopefully, it’s not too late to save your home.