"The Bank Is Foreclosing.
Help Save My Home!"
When you bought your home, you never expected to miss a payment. However, the unexpected can happen, leaving you in a bad financial situation. If you've defaulted on a payment, you could find yourself wondering: “Who'll save my home?” Here's some information to help you find out how to keep your house and prevent foreclosure.
First of all, don't freeze up. Many people respond to a default with inaction. While they'll acknowledge that there's a problem, they don't act quickly enough to do anything about it. Denial and fear can cause homeowners to lose the opportunities they have to avoid losing their homes. Instead of freezing up, be sure that you read and respond to all mail from your lender, and examine your options. Taking action early is the best way to make sure that you keep your house.
Communicate, Communicate, Communicate!
Second of all, don't overreact to a missed payment. Just because you haven't been able to keep up doesn't mean that you've lost your right to own a home. Being overly certain that you'll suffer a foreclosure could cause you to fall prey to scams and illegitimate companies that hope to profit from a panic. In the worst case scenario, you could lose your rights to the home to a scammer, but still be held responsible for the payments!
Communicating with your lender is the most important thing you can do if you think that you might go into foreclosure. While talking to your lender can be intimidating, it's what's required. Lenders are surprisingly willing to come up with alternatives that will help you keep paying and retain your home. Foreclosing is a difficult process, and most lenders would rather avoid it if they can. Remember that your lender deals with customers in default on a daily basis, and is experienced in coming up with ways to let you keep your home.
Have All Documents Reviewd
If you and your lender do reach an agreement that will save your home, be sure that you get it in writing. This protects you from lenders that aren't so honest, and means that they'll have to hold up to their end of the agreement, too. Before you sign anything, make certain you understand it. The best way to do this is to have all documents reviewed either by a real estate lawyer, or by a counselor approved by HUD.
If you can't work out a resolution with your lender, knowing your deadlines can help. Different states have different laws – in some, the bank can auction your home in as little as a month. In others, it will take over a year to finish foreclosing. Either way, be sure you understand how long you have before you'll lose your property. If the auction is a long way off, you'll have time to take action and still be able to save your home.