I have spoken with far too many people that have not only had problems paying their mortgage, but have waited too long to do anything about it. There are many reasons that people can start to struggle with their finances, and it doesn't mean that are bad people. Your bank is not the evil landlord who is looking to foreclose on your home either, but they do want to hear from you when you are having trouble. Many times they can work out a repayment plan with you BUT you need to talk to them BEFORE they contact you. By then, they may feel that you have just neglected your responsibilities.
Life Happens
People lose jobs, people get sick, people lose investments, people have tenants that don't pay thier rent, and the list goes on. Sometimes the answer is selling your home, sometimes it is walking away, but it does not always mean you have to lose it all.
What to Do
As soon as you see a problem arising with your finances, you need to think about your mortgage first as it is your most critical debt if you own a home. Contact your mortgage company and tell them your situation and see if they are willing to work something out with you. Contact your mortgage lender, provided that they aren't the reason you are in the situation you are in, and let them know you need some help. Call your real estate agent and find out what your home is really worth and what the market looks like. These professionals can be a huge help to you, so don't try to go it alone.
What If You Have Waited Too Long?
If your bank has contacted you and told you that are facing an imminent foreclosure, it's now too late to call your lender or your realtor. You now need to contact a foreclosure specialist. Let me clarify the two types of foreclosure specialists that exists. The first can help you negotiate with your bank and keep your home, and the second can help you sell your home even if you owe more than your home if worth (they are also called short sale specialists). Do your homework, get referrals, and make sure you are dealing with a reputable person here because I have personally seen greedy people jump into this market space in the name of helping people, but they are actually preying on desperate people.
My company currently offers foreclosure assistance. We have a team that includes both bank negotiators and investor buyers that have a sincere desire to help you, not matter what the circumstance.
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