Avoiding Foreclosure
Large amounts of foreclosures are still a big problem in our real estate market. Unfortunately, sometimes foreclosure can be unavoidable. However, in many cases there are steps that you can take and programs that you can find to possibly prevent foreclosure. Keep these things in mind if foreclosure looks like it may be a possibility:
- Don't Leave Your Home - If you are facing the possibility of foreclosure, it is very important that you stay in your home as long as possible. If you abandon your home and the property becomes vandalized in any way, the bank can - and likely will - charge you for the repair costs.
- Stay in Contact - It won't help your case at all if you refuse to develop any kind of dialogue with your lender. If something has happened and you know you may have trouble with your next mortgage payment, call your lender and let them know. Follow up every telephone contact with a written letter. The more contact and information the lender has with you, the easier it will be for them to work with you.
- Lenders Want Their Money - It doesn't seem to make sense, but right now lenders are less willing to work with home-owners who have been making payments for years and built up equity. Remember that lenders are a business and want to make as much money back as they can. They can take what you've already paid on your mortgage, sell your home for less than it's really worth and still make money. If you haven't been in your home long and haven't built much equity, your lender may be more willing to help you avoid foreclosure because they will make more money in the long run.
- Be Wary of Scams - The shaky lending market has attracted many con artists and scammers looking to take advantage of desperate home owners trying to avoid foreclosure. When seeking help, it is extremely important to research the groups and programs that you are looking into and make sure you know exactly what is going on. Be wary of anyone who demands an upfront fee before helping you. Try to avoid groups that charge you for doing something that you could do yourself for free (such as talking to your lender for you). Also, the Department of Housing and Urban Development has a list of approved foreclosure-prevention counselors that you can consult.
- Know What Help You Need - There are many programs available that will help you on a one-time basis. Oftentimes, these programs will only help with a single payment. Carefully assess your situation and see if this will be a remedy or simply an ineffectual bandaid on the problem.
Foreclosure is becoming a reality for an increasing amount of Americans, but there are programs out there that can help. If you need help finding a foreclosure-prevention counselor or if you are interested in buying or selling a home in Central Florida, please feel free to contact me, email me, or phone me directly at (407) 421-1052.
