Part 4:
Homeowners and Foreclosure:
When to Seek Help

Are you a homeowner who is experiencing financial difficulties?  If so, foreclosure should be a concern of yours.  Unfortunately, many homeowners believe that foreclosure will simply go away.

Yes, many truly know this will not happen, but some do convince themselves that the best thing is to do nothing.  Do not make this mistake.  To protect your credit and your home, you need to know when and where to seek help.

Today's economy is hurting many companies, such as those in the auto industry.  For that reason, many employees are finding themselves laid off.  If this happens to you, you need to seek help immediately.  Initially, that help should come from your mortgage lender.  This is important because even if you are able to draw unemployment, there is often a waiting period.  Let your lender know that you will be unable to make a full payment for the next month.  Be sure to state that you intend to either find a job or use your unemployment check for your mortgage. 

Another issue that should be discussed with your mortgage lender is injury.  Are you injured and can't work?  Whether you will receive disability or worker's compensation, there is a waiting period.  In fact, this waiting period may take up to six weeks or more!  In this time frame, you may miss one or two mortgage payments.  Do not let your mortgage lender get the wrong impression.

If you will be able to return to work in a few months, bring proof.  Have a notice from your doctor, as well as from your employer.  When a mortgage lender can see that you will be returning to work and your previous financial status soon, they should be more willing to work out a temporary payment plan with you.

In addition to speaking with your financial lender, advice can be sought from a real estate investor.  If you are facing long-term financial problems, as opposed to short-term, it may be within your best interest to sell your home before you are faced with foreclosure.  Depending on the value of your home, the amount you owe on your mortgage, and other factors, you should be able to at least get enough money to pay your mortgage in full and relocate.

Once your home is in the stages of foreclosure, many times a real estate investor can help you stop the foreclosure and can buy the property from you.  If they're unable to help, a lawyer is usually the only professional who can get you out.  With that said, lawyers are faced with limited options once foreclosure has begun.  They may be able to stop the proceedings by having you file for bankruptcy.  Obviously, this would be a last resort. 

You really want to avoid bankruptcy and foreclosure if at all possible because it will completely trash your credit and make it very difficult or impossible to find another place to live.  Even apartment complexes usually check your credit and may not want to rent to you if you have a foreclosure or bankruptcy on your report.

Many times, a real estate investor can step in and keep things from getting to that point and buy the house from you, which can save your credit and allow you to be able to find a more affordable place to live.

Speaking of relocating, many homeowners don't know what to do or where to go.  This is despite the fact that many saw foreclosure coming from a mile away.  Many times, the real estate investor who is buying your house may have other houses available that are more affordable, or if not, they may have connections to other real estate investors who do.

If not, what you will want to do is contact the United States Department of Housing and Urban Development (HUD).  Their mission is to make sure that all Americans have access to safe and affordable housing.  You can speak to a HUD approved housing counselor who can help you review your options.  There is also another branch for rural areas.

As you can see, you don't and shouldn't have to face foreclosure alone.  No matter what stage in the process you are at, there are professionals who can help.

Sincerely,

John Smith

Copyright and web design © 2012 Serve Sense, LLC.  All Rights Reserved.