How to Forestall Foreclosure

by Donald Hanz on General

If you read newspapers and watch news, you are quite aware that the nation is struggling with a foreclosure crisis. According to the Mortgage Bankers Association, there are approximately 250,000 foreclosure filings every quarter. Although you have been fortunate enough to have avoided being in the shoes of over 3 million homeowners, this does not mean that you are in the clear. Unexpected circumstances like an illness or job loss can put you at risk.

In order to forestall foreclosure, you should be well prepared. Here are some simple tips that you should consider.

  1. Communicate – before you miss a payment, you should make an effort to speak with your lender regarding your situation. You will have an easier time dealing with your mortgage problem since most lenders are eager to work with their borrowers than to proceed with a foreclosure case.
  2. Learn About Your Options – in order to address your mortgage problems, you must find out what your options are. Depending on your financial situation, you could opt for a new repayment plan, loan modification or even a short sale. Before making a decision, you should be aware of where you stand financially. If you face your mortgage problems realistically, there is a better chance that you will find a long-term solution.
  3. Seek Foreclosure Help – if all the legalese are making your head ache and you are at a dead end with your negotiation, you should look for foreclosure assistance from non-profit groups. They can provide you with foreclosure counselors and even lawyers, who will guide you through each step of the foreclosure process.

Once you have successfully stopped foreclosure, you should make an effort to avoid making the same mistakes that landed you in this financial mess. It will be wise to keep in mind the lessons you learned from this ordeal so that you will never find yourself in the same situation again.