Five Hints to Help Avoid Foreclosure
Does it get any worse than falling behind on your mortgage payments? Actually, it does. When your lender opts to repossess your home, it is called foreclosure. Not only will you be forced to leave your home, but if it is worth less than what you owe on your loan, you could receive a deficiency judgment. This means you will owe your lender an additional amount of money and your ability to qualify for credit will be affected.
As a homeowner, you will want to do all that you can to avoid this chain of events. As soon as trouble looms on the horizon, follow these steps:
Face the facts. Ignoring the problem will not make it go away. As you fall further and further behind, the harder it will be for you to reinstate your loan.
Contact your lender. As soon you face the facts, get in touch with your lender. If you receive a first notice in the mail, open it. Either way, your lender does not want your home and will be willing to discuss your options. If you fail to communicate or check your mail, legal action will be imminent.
Know your rights. Do you know where your loan documents are? They contain language that informs you of what will happen if you do not make your payments. If you contact the State Government Housing Office, they will bring you up to speed regarding New Jersey’s foreclosure laws and timeframes.
Get your affairs in order. Start by prioritizing your spending. Once you make keeping the house a priority, optional expenses such as cable TV, memberships and entertainment expenses may need to be eliminated. Credit card payments may have to be delayed. What about your assets? Do you have a car or jewelry you can sell? Even if someone in the house takes on an extra job, you are showing your lender that you are doing all that you can to make those payments.
Stay calm. It is too easy to panic in times like this. Panic, however, will make you do things like hire a foreclosure prevention company, or worse, fall for a foreclosure recovery scam. Foreclosure prevention help costs money that you could be using to pay your mortgage. Have an attorney read over any documents promising an immediate stop to your foreclosure in exchange for your signature. You could be signing over the title to your property!
For more tips and information to avoid foreclosure read 10 Tips to Avoid Foreclosure
Please be advised that this blog is for informational purposes only, is not legal advice and does not create an attorney-client relationship.
The Law Office of Joseph C. Falk, LLC
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