Tips For Surviving the Foreclosure Crisis
Photo by: gruntzooki
This article originally appeared as a guest post on I’ve Paid For This Twice Already…
More than a million homes could potentially face foreclosure this year. This is 30% more than in 2006. People are panicking and looking for anyway out they can. Scammers are making the situation worse and taking advantage of people.
Here’s a few tips:
Know Your Rights
Read over your loan documents and papers. Look on your state’s website and learn about the foreclosure rights in your state.
Prioritize your spending
Review the life basics and pay for them first. Next to food and clothing, your home should be your next priority. Other debt collectors calling? They can wait.
Contact Your Lender
As soon as you have a problem paying your mortgage, contact your lender. Most want to help you keep your house as they don’t want the hassle of having to foreclose and sell the home. They’ll often work out a plan with you. If you lose your home, they lose too.
HUD, the Department of Housing and Urban Development offers free and low-cost counselors in addition to providing information on avoiding foreclosures. HUD is available at www.fha.gov or by calling 1-800-569-4287.
Respond to all mail or calls from your lender
If you receive mail from your lender, make sure you read it. Early letters often provide options or opportunities to discuss options with you lender. Make sure you take advantage of them. Later letters are legal notices and by that time the lender isn’t going to be too open to discussing options.
Don’t be fooled, you don’t have to pay a fee for foreclosure help and assistance. If some company claims they can stop you foreclosure, don’t sign anything and don’t believe it. Work with your lender not Foreclosures R Us.
In a common scam called “equity skimming” a so called “buyer” offer to repay the mortgage if you sign over your deed and move out. All you get is the mortgage in still in your name and no house. Don’t look for the short or easy way out.