How to Save Your Home From Foreclosure
One out of every 200 homes will be foreclosed upon, according to the Mortgage Bankers Association. Foreclosure is a traumatic experience that no family should have to experience. It contributes to depression and marital problems, and causes distress among family members. Many homeowners report they even avoided their lenders out of embarrassment during financial struggles. You may not be able to prevent job loss, but there are some things you can do to save your home from foreclosure.
- Call the lender. Let them know that you are having financial trouble before you miss a payment. There are ways they can work with you to avoid foreclosure. They don't want to own your home, but they need you to help yourself so they can help you.
- Check your terms to see if you have any coverage for your situation. For example, the Home Affordable Unemployment Program can temporarily reduce or suspend mortgage payments while you seek employment. The FHA Special Forbearance program does the same for FHA qualifying borrowers.
- Speak to the lender about modification programs. These programs can lower your monthly payment by lowering your interest rate, extending your mortgage term, or even by reducing your principal amount.
- Apply for any assistance for which you may qualify. It can require swallowing your pride and doing some legwork, but programs such as TANF, SNAP and WIC can help you free up money to put toward your mortgage.
- Save three to six months worth of expenses after you get back on your feet. Tighten your budget and put away the cash. It could keep you out of this situation if you face financial disaster in the future.
Make sure you act, doing nothing will only result in your house being foreclosed on. If you need help or advice please reach out to us we would love to help. Check out these links for more information on how to avoid foreclosure: