When homeowners get behind on their mortgage payments, the threat of foreclosure is a terrifying experience. That's because homeowners stand to lose a lot that they have worked so hard to obtain financially. Even worse, their families could become homeless if they are unable to pay for a new home or apartment to live in.
If you're facing the possibility of foreclosure, the government website, USA.Gov, offers a two-step strategy for avoiding the foreclosure process:
Step One: Once you realize that you're in over your head financially and will not be able to make a mortgage payment on time, it's vital to get in touch with your lender and notify the bank of your financial problems. You may be surprised to find that your lender will work with you, and help you create a plan to get back on track. Never stop paying your mortgage if you can help it. Also, contact your lender as far in advance of not being able to pay your bills as possible.
You could feel embarrassed or scared. However, the sooner you talk to your lender about your financial problems the less chance you will have of getting so far behind that you can't catch up.
Step Two: The Making Home Affordable (MHA) program can help you. This program offers free advice and counseling and other assistance so that homeowners have a better chance of keeping their homes and/or getting out of their mortgages safely. The MHA has a hotline that homeowners can call at any times with their foreclosure questions and concerns. The counselors can be immeasurably helpful in offering potential solutions to your mortgage dilemmas.
Finally, homeowners facing foreclosure may want to speak with a Texas real estate attorney. An attorney can represent you in defending against a potential foreclosure and try to help your family keep your home.
Source: usa.gov, "Foreclosure," accessed Aug. 18, 2017