Preventing Foreclosure

Steps to Prevent Foreclosue

The following steps require hard work and determination to save your home. The most important thing is to act quickly - the longer you wait, the fewer options you will have.

Step 1: Make the decision to fight to save your home - are ready to take responsibility and WORK your way through your current financial challenges. Be honest, it will be tough, but if you plan carefully and work openly with your lender you have a much better chance.

Step 2: Rebudget for the next 3-5 years. This may take a long time to construct, but by breaking down your income and committments month by month, you have a more realistic view of your ability to keep making mortgage payments

Step 3: Post your budget where it is constantly in view - in your diary, your computer, on your kitchen wall. Put small reminders in your wallet.

Step 4: Get ahead of the game - plan your contact to your lender by acting like you own bank. Know your financial situation in detail so you can answer questions confidently.

Step 5: Contact the holder of your home loan - tell them about your situation and what you want to do to remedy it. If your goal is to keep your home, make sure they know that you have a plan. Speak with confidence by reality. If you cannot locate the bank that holds your home loan, contact the consumer affairs department of your state’s Attorney General Office and ask if they have a mortgage unit. Ask for help.

Step 6: Respond promptly to requests from your lender - how your lender responds to your request will determine how you proceed. If they are willing to work with you, make sure you provide any further information and follow their instructions, quickly and fully.

If you lender is not able to assist, check your local yellow pages for accredited debt counselors in your area. You can get a referral to a non-profit counseling agency approved by the Department of Housing and Urban Development or the National Federation of Credit Counselors.

Getting out of foreclosure risk is not easy, but it is possible. If you don't try you fail - if you do try, you just may succeed.