How much time do I have to avoid foreclosure?
To stop foreclosure, you need to talk to your mortgage lender as soon as you find that you cannot keep up with your monthly payments. Contact your banker in the first month after you miss a loan payment, because the homes foreclosure process may speed up after that. As you get further behind in your payments, it will become harder for you to stop foreclosure.
If you feel that you can’t afford the monthly payments due to an event like a medical problem or job loss, you ought to talk to your lender even if you are current with your payments.
Loan modification is one of the options you can discuss with your lender. It involves changing the terms of a housing loan so you can have a reduced monthly payment. It may be right for you if you have a regular income, and the value of your home is more than what you owe on your home loan.
If you cannot afford the lower monthly payments, or if the value of your home is a lot less than what you owe on your mortgage, you can consider making a short sale. This involves selling your dwelling for less than what you owe on your mortgage. The bank accepts the amount received as full payment for the loan.
Your lender may start the foreclosure process 3 to 6 months after you miss the first payment, though late fees may be applicable after 10 to 15 days.
Read your loan documents to find out about the steps your lender may take if you miss payments. Contact your State Government Housing Department to find out about the applicable foreclosure laws and timeframes in your state.
Don’t avoid payment reminders sent by your lender. You may first receive notices that will give you information about your options for getting through your financial troubles and stopping foreclosure. Subsequent notices may inform you about legal action.
You can find useful information about foreclosure prevention on the website of the U.S. (HUD) Department of Housing and Urban Development. You can visit the website of the HUD to look for an authorised housing counselor in your location. You can also seek the advice of an attorney or a trusted real estate professional.
You need to act quickly and do everything you can to stop foreclosure, because it can have a severe and long lasting effect on your record. Talk to your lender, and seek the help of an experienced advisor, as soon as you feel that you will not be able to keep up with your mortgage loan payments.
Filed under Foreclosures by .