No homeowner wants to think about the possibility of losing their home, but foreclosure can become a reality if you fall behind on your monthly mortgage payments. Whether you’re dealing with foreclosure now or worried about impending financial hardship, it’s crucial to remain calm and tackle the issue as soon as possible. Below, we’ve provided tips to help you keep foreclosure at bay.
1. Speak to your lender immediately
If for any reason you suspect you might miss a house payment, you should notify your lender right away. Lenders often have programs that can assist you in dealing with economic issues. Explain to your lender why you’re missing your payment and how long you expect the situation to last.
2. Read any mail or notices sent by your lender
It’s usually in your lender’s best interest to help you keep your house. In the event of a financial issue, you’ll likely receive mail from your lender detailing options they provide to help homeowners avoid foreclosure. Make sure you’re opening and reading these messages to stay on top of the situation.
3. Know your mortgage rights
It’s a good idea to know how foreclosures are handled in the State of Texas. More importantly, you should know how your lender will respond in the event that you miss mortgage payments, so review your loan documents carefully.
4. Develop a stronger budget
When faced with the possibility of foreclosure, saving money should be a priority. Examine your monthly spending habits and see if there are any areas in which you can make cuts, such as entertainment, dining out and monthly subscriptions or memberships.
5. Use your assets to your advantage
Do you have any valuables you could sell to help make your mortgage payment? This could include jewelry, additional vehicles or other expensive purchases. Alternatively, perhaps someone in the family could take on a second or part-time job. Any money you can put towards your payment will help your situation.
6. Avoid falling for foreclosure prevention company scams
Though they may provide sound advice, enlisting the help of a foreclosure prevention company may only further your debt, as they often charge a hefty fee to provide you with answers. It’s best to speak with your lender or an HUD-Approved Housing Counselor to help get yourself back on your feet.
Unexpected disasters can make monthly house payments difficult, but remember that you are not alone. There are many resources you can call upon to help you solve your dilemma. For more information about avoiding foreclosure, visit HUD.gov.