You adjusted your budget, picked up a part-time gig in Maryland and sold a few of your belongings, but you cannot catch up on mortgage payments. Foreclosure looms in the distance, and you do not know what to do.
Get tips on avoiding foreclosure from the U.S. Department of Housing and Urban Development. Educate yourself on ways to keep your home and sanity.
Reach out to your lender soon
Do not wait for your lender to contact you about late mortgage payments. Let your lender know about your financial struggles soon, so you have time to create a solution together.
Respond to letters from your lender
Maybe your lender already contacted you about falling behind on your house payments. Do not ignore the letters you receive. Instead, read the mail, as it may offer viable foreclosure prevention tips. Lenders want to protect their investments, so they want to work with you to get your payments back on track.
Work with a housing counselor
HUD offers affordable and free housing counseling to those in need. With a counselor’s aid, you may learn more about your rights as a borrower, get help to improve your financial health and negotiate with your lender.
Do not work with foreclosure prevention businesses
Paying a foreclosure prevention company to broker with your lender often becomes a waste of time. Even if you work with a legitimate company, you should not pay a massive sum to access resources that you may use for free. It is better to spend that money on your house payments.
Foreclosure does not have to become inevitable. Take control of your situation with a proactive mindset.