Are you behind in your house payments? Here are six tips if you are unable to make your mortgage payment:
1. Don't take the "ostrich approach" and ignore the problem.
The further behind you become in your mortgage, the harder it will be to reinstate your loan and the more likely that you will lose your house. Contact your friends and family members to see if you can borrow money. There are also online places where people have successfully found "angel" donor such as www.craigslist.com and www.prosper.com
2. Contact your lender as soon as you realize that you have a problem.
If you find out on Friday that your company is going to be "downsizing" soon, call your lender. Lenders really will work with you because they do not want your house. The government is presently working with lenders to offer them options to help borrowers through difficult financial times. So you may find that your lender will work with you.
3. Open all mail from your lender.
Some lenders may seem harassing with their constant phone calls, but sometimes they do this because they can offer good information about foreclosure prevention options. Good news to weather financial problems may also come in the mail, so don't throw it away. Important notices of pending legal action may come in the form of registered mail, and failure to open the mail will not be an excuse in foreclosure court.
4. Call a Credit Counseling Service or Visit One Online.
Credit counseling services are available to those who know that they can't make their payments. Call 1-800-569-4287 to find a counseling service located in your state. You can also find more information about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office, or by visiting: www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
5. Beware of Foreclosure Prevention Companies.
Many for-profit companies offering to negotiate with your lender are rip-offs and will just take your money and not provide any service. While there are some legitimate businesses, some will charge you as much as two or three month's mortgage payment for information. Your lender will provide the same services for free and may even be willing to modify your loan for free if you contact them and provide them the necessary financial information.
6. Don't EVER sign a Power of Attorney Form without Understanding its Ramifications!
If any person claims they can stop your foreclosure immediately if you sign a Power of Attorney appointing them to act on your behalf, you may well be signing over the title to your property. With this document properly recorded, you can be evicted from your own home! Never sign a legal document without reading and understanding all the terms and conditions. Get professional advice from an attorney or a trusted real estate professional first.
Foreclosure prevention counseling and homeless counseling services are available free of charge through HUD's Housing Counseling Program. Housing Counseling agencies participating in HUD's Housing Counseling Program are not permitted to charge consumers for these specific housing counseling services.
More more information, please visit your local HUD office. You can find a branch nearby by visiting their website at http://www.hud.gov/localoffices.cfm.
Bob Boog is the author of three books on selling real estate, Selling Homes 1-2-3, Real Estate Sales from Hell and How to Find a Killer Real Estate Deal. His latest masterpiece is titled Short-Sales 1-2-3. Visit his website at www.short-sales1-2-3.com
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