No one sets out to lose their home or enter into an exhausting battle with their lender in order to keep their most prized possession the roof over their head. Financial woes can creep up on you out of nowhere. Perhaps you are suddenly facing overwhelming medical bills or have lost a portion or all of your income. Job losses are definitely not uncommon anymore and everyone seems to know someone who has lost a job or is experiencing some sort of financial difficulties.
Foreclosures are on the rise and you don't have to look very far to find someone who is either behind on some mortgage payments or is looking for a way to get out of foreclosure. One positive outcome from the recession is that lenders are a bit more willing to help borrowers get out of foreclosure. They arenít ignoring the fact that you may not be paying your bills but they may be a lot more willing to help you find a solution.
The best way to get out of foreclosure is simply to avoid getting into the situation in the first place. If you know that you are not going to be able to pay your mortgage for a month, or longer, notify your lender immediately. They don't want your house.
They aren't going to padlock the front door right away and toss your possessions out onto the lawn. It costs the lenders thousands and thousands of dollars to enter into foreclosure. Not only do they lose the interest and principal payments that you are supposed to be making but they have to pay quite a bit to enter into the lengthy and costly legal process in order to take your home from you.
If you are behind in your payments or simply need to get out of foreclosure, talk to your lender. Donít ignore the problem; don't avoid their mail correspondence or their phone calls. Ignoring their attempts to reach out to you could actually make things more difficult for you.
Let them know that you want to get out of foreclosure or even avoid any repercussions if possible. If you have a temporary financial situation, they may give you a few months of deferment payments or even a temporary forbearance. If it is a long term situation, there still could be options. There are programs designed now to help you get out of foreclosure. There are agencies that will help you and counsel you, at no cost, in order to help you figure out a plan and a solution.
There are other ways to get out of foreclosure. Some loans and modification plans have been implemented and created by lenders who are seeing record numbers of borrowers defaulting and walking away from their homes. You may be able to refinance and lower your payments. You may be able to sell your home in a short-sale or get assistance in preserving the equity that you have in your house.
Honestly, if you are finding it hard to pay your mortgage or have the need to get out of foreclosure, donít run from the problem. Yes, it is embarrassing and incredibly humbling. However, avoiding the problem isnít going to get you out of foreclosure.
Addressing the problem and actively and aggressively moving towards a solution is going to get you out of foreclosure. It is possible to keep your home; you simply need to reach out to find some assistance. You may find that the lenders are more willing to work with you than you gave them credit for.