On the Brink of It? How to Get Out of Foreclosure?

On the Brink of It? How to Get Out of Foreclosure?

how to get out of foreclosureFailing to make your home mortgage re-payments may result in the foreclosure of your property or home.  It is a legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you lose not only your home, you also would owe your lender an additional amount. Both foreclosures and deficiency judgments could seriously affect your credit scores in the future.

However, there are still ways on how to get out of foreclosure process.  The worst case scenario would be receiving or ignoring all those letters and calls from your bank or lender.  Instead, you need to identify an option of refinancing your loan or mortgage to keep your property.

So how to get out of the foreclosure process?  Below are some helpful tips to remember before foreclosure is enforced:

Identify the problem.

The more you ignore the issues, the harder it will be to reinstate your loan and the more likely that you will lose your house.  So, identify the issue and start from there.

Contact your lender immediately.

As soon as you identify the issue and you realize that you have a problem.  Contact your lender immediately.  They have options to help borrowers through difficult financial times.

Open and respond to all notices and mail from your lender. 

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems.  Later mail may include pending legal action notices.  It is always better to be informed for you to know your counter-actions.

Know your mortgage rights.

Learn about the foreclosure laws and time-frames in your state (as every state is different) by contacting the State Government Housing Office.  Find your loan documents and read them so you know what your lender may do if you can’t make your payments.  You have all the rights to find other solutions to settle the issue.

Use your assets.

Do you have assets — a second car, jewelry, a whole life insurance policy — that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

Know the foreclosure prevention options.

All the information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm.

Get a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.

Call a Professional Agent.

One of the best things to do is to get help from a professional, such as a company that buys homes in cash, or even contact a lawyer. The foreclosure process proceedings can be avoided by also contacting your mortgagee the moment you realize you are falling behind in your payments. This will be easier for both of you as you can negotiate a new deal immediately and identify how to get out of foreclosure.

Regardless of what you or the bank decides to do, the foreclosure process will take around 2-3 months to complete. Remember, each case is different, and the details surrounding the case will play a role in how long the process will take to complete.  And If you need assistance on any of the above issues, you may call us at 216-282-4332 and CPD Homes will be more than happy to assist you!

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