Unexpected life occurrences like medical bills or losing your job can financially overwhelm you. These life events can cause you to miss monthly payments on your mortgage. Missing one payment by a couple of days will not hurt you. However, if you continue missing payments, you could be at risk of having your home foreclosed.
Fortunately, there are many ways to stop foreclosure proceedings if you act quickly. Additionally, there are government programs that can assist you if your home is at risk of being foreclosed.
What are the best options for avoiding foreclosure?
Besides being forced to move out of your own home, having your house foreclosed can have a lasting impact on your credit, as well. Here are a few ways to avoid foreclosure proceedings:
- Contact a housing agency: Once you start falling behind on your mortgage payments, you may want to contact a housing agency approved by the Department of Housing and Urban Development. A counselor will understand foreclosure laws and let you know what options you have.
- Ask your lender about other options: Lenders only want the money owed to them, they do not want to go through the hassle of foreclosing your home unless it is necessary. Your lender will be more likely to help if you let them know about your financial problems sooner rather than later.
- Communicate with your lender: After your mortgage payments are 16 days overdue, your lender will try to contact you. They will attempt to work out a payment plan to recover the money you owe. Ignoring these attempts to contact you will only make the problem worse later on.
- Spend wisely: You should prioritize making mortgage payments over everything except medical expenses. You may want to take a look at how you are spending your money and attempt at cutting back on unnecessary things.
- Understand your loan documents: If you are struggling to make payments, you may want to review your loan documents to understand what your lender is allowed to do.
Researching the foreclosure laws in your state may also be a good idea. Each state uniquely handles foreclosure and the timeframes for the process may differ as well.
If you are starting to fall behind on your mortgage payments, consider speaking with an attorney. They will understand your state’s laws and the options you have to stop foreclosure proceedings.