When you buy a house, whether it's a starter home or your dream house, you do it with the intention of making all your payments, but sometimes life intervenes. Perhaps you lost a job or suffered the passing of a loved one who was the breadwinner of the household. However it happened, you find yourself behind on payments and stressed about the prospect of the bank foreclosing on your home.
You might feel like you don't have any options, but it's important to remember that there may still be some steps you can take to delay or prevent the foreclosure:
- Don't avoid the problem. Your natural inclination may be to ignore the issue because of the stress it causes you. However, the sooner you face it, the more options you have.
- Talk to your lender. Lenders would much rather have a paying occupant than deal with taking a house back and putting it on the market. Call them first and see if they can offer you any relief.
- Read your mortgage documents. The documents you signed at the closing will have valuable information about what happens when you fail to make payments.
- Review your financial situation. There may be ways you can cut back. Getting rid of cable or selling a car may seem like an awful prospect, but keeping your house may require a sacrifice.
- Forget foreclosure prevention companies. There's no reason to pay a company to negotiate with the lender ? a HUD counselor can give you the same information for free.
If you feel like foreclosure is inevitable, another option is to contact an attorney. A lawyer with experience in foreclosure assistance will be able to advise you on the best course of action.