4 Ways to Fight Foreclosure

4 Ways to Fight Foreclosure

A foreclosure can be a very scary experience. Many people purchase their homes and most people have no idea that they can lose it through a foreclosure. In America, you either get foreclosed upon in a judicial or non judicial jurisdiction. Regardless of which one you are in, you must equip yourself with knowledge. When faced with foreclosure, most people make the mistake of thinking that the lender will provide them with valuable information to help the borrowers. That is never the case. But that is okay because there are ways to save a home from foreclosure. Below are 4 things you need to know when facing foreclosure:

1. Come up with a game plan

You must figure out whether you can save the home or will you be walking away from it. If you decide to save the home, then contact the lender and request the loss mitigation department. Then advise the loss mitigation department that you want to save the home. The lender will then extend the programs it has available to you. If you qualify for one of the programs that the lender outlines, then you will be on your way to saving your home. If you decide to walk away because there are no other options, then contact a real estate attorney who will advise you on your legal consequences. You should also consider talking with an accountant, who will advise you on your tax consequences. You will need to meet with a realtor who specializes in short sale.

2. Go over your finances

One of the reasons a homeowner faces foreclosure is because of an undue financial hardship. As such, the best thing to do is to calculate whether you can hold on to the home. You can only do so, by going over your finances. The rule of thumb, which seem to be the only thing that work is you can only afford a mortgage payment that does not exceed 31% of the gross income. You will never be able to afford a home where your mortgage amount exceeds 31% of the gross income. If you do not want to set yourself up for failure, then only take on a mortgage where your debt to ratio does not exceed 31% of the gross income.

3. Hire an attorney

It would be wise to hire a foreclosure attorney because when you are getting into foreclosure you need legal advice. The lender will not be doing that for you. Most people don’t understand that when you stop paying on your mortgage, the lender really does not care about you. You are now a liability and the lender is attempting to secure its interest in the property. A foreclosure attorney will provide and preserve the legal rights you have when face with foreclosure.

4. Get educated

If you like to read, then consider investing in a self help book on foreclosure. There are self help book on foreclosure that provides you with information to help you save your home or walk away with little or no liability. A good foreclosure self help book covers every state, judicial and non judicial foreclosures. It is written by an attorney in lay man terms. A good self help book on foreclosure help is very easy to read. Get one, so you can save your home. Know your options from an attorney, the author of a foreclosure self-help book.