Whether you are the brink of foreclosure or thinking o walking away from your house the first thing you should do is call the bank or lender that holds your mortgage or mortgages.  Whether it is a Michigan foreclosures or in another state here is what to do.

1.)  CALL YOUR EXISTING LENDER(S) OR BANK (S)   Explain your situation.  Tell them you financially can't afford the payment or the new rate.  See what they can work out.   Tell them you don't want to go into foreclosure. 

• Can they lower the rate?
• Can they lock in a fixed rate instead of the variable rate?
• Can the rate be the same as your initial rate that you had when you got the loan?
• Can they put the past due payments on the back of your loan and not raise the payment?

If you can't work out a financial plan with your lender to stay out of foreclosure or save your house then you should:

2.) Explore your options of selling the home or giving your home back to the bank.

• Call a local Realtor to do a comparative market analysis and get your home listed for sale.
• If your home is not worth what you owe on it. DO A SHORT SALE.  A short sale is where you get the bank to agree to take less money than what you owe on the house.  You will put it up for sale at a fair market value for the condition of the home.
• Again you have to call your bank for permission on a short sale.  Every bank has different rules and procedures.  Some have paperwork to fill out, some don't.
• A deed in Lieu.   Your lender may agree to allow you to voluntarily "give back" your property and forgive the debt. Although this option sounds like the easiest way out for you, generally, you must attempt to sell the home for its fair market value for at least 90 days before the lender will consider this option. Also, this option may not be available if you have other liens such as judgments of other creditors, second mortgages, and IRS or State Tax liens

3.)  Call for foreclosure help lines and read up on what to do.  Here are some sites to go to:

• 888-995-HOPE   National foreclosure help line
• http://www.hud.gov/foreclosure/index.cfm  Government tips on how to avoid foreclosure
• http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm  Hud approved home counseling agencies by state
• For assistance call toll-free (800) CALL-FHA / (800) 225-5342  For homeowners with FHA loans
• http://www.995hope.org/  Homeownership preservation foundation
• http://www.freddiemac.com/corporate/buyown/english/avoiding_foreclosure/  Freddie Mac foreclosure tips
• http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm  Federal Trade commission tips
• http://www.aarp.org/money/credit_debt/above_water.html  AARP foreclosure tips
• http://stopforeclosure.com/  Private company that works with foreclosure clients

Thinking that you may become a Michigan foreclosures act now and call your lender.  Don't give up there, you don't have to become a Michigan foreclosures try one of the HUD approved home counseling help lines.  They may be able to help you.   If you live in the Metro Detroit area and need help on a short sale email me at Info@RussRavary.com  For more on Michigan real estate go to http://www.russravary.com/ or http://www.detroitmichiganrealestatehomes.com/

My quote of the day:

There are times in everyone's life when something constructive is born out of adversity... when things seem so bad that you've got to grab your fate by the shoulders and shake it.  ~Author Unknown