Missing a mortgage payment can damage your credit for years, and missing more than one payment can put you on the road to foreclosure, but is it possible to avoid home foreclosure if you’ve missed a few mortgage payments? The prospect of losing your home can fill your days with uncertainty and worry, but financial problems don’t necessarily mean the bank will foreclose on you and that you’ll have no recourse for regaining your property.
There are some ways that you can reduce the likelihood of foreclosure, and it’s important to consider them in advance of receiving a letter in the mail that says the bank has started foreclosure proceedings against you.
The federal government suggests communicating with your lender at the first sign of trouble. The earlier you attempt to fix your predicament, the easier it may be to avoid foreclosure.
“As soon as you realize that you are going to have trouble making your mortgage payments, contact your lender and tell them about your financial difficulties. This gives them the opportunity to work with you to create a plan. Do not stop paying your bills, and do not wait until you cannot make payments before you act.”
It’s rather difficult to stop the wheels of foreclosure from turning once they’ve begun, and early action may mean you can eventually put your financial problems behind you and rest easy in your home.
Options for Staying in Your Home
Lowering your monthly mortgage payment may be the solution to keeping your home, but it’s best that you don’t rush into a refinance of your mortgage loan. In some cases, refinancing may save you money, but in others, a refinanced loan may simply cost you more in the long run even if it gives you lower payments for the foreseeable future.
Fannie Mae offers some advice on whether a refinanced mortgage loan can save you from home foreclosure.
“If you haven’t been late on your mortgage payment in the last 6 months, you may also qualify for the government’s Home Affordable Refinance Program.”
It’s essential to compare the overall cost of your loan should you choose to refinance and what you might pay without refinancing your home. Are your current financial problems such that paying more on your loan, in the long run, is a better idea than keeping your loan intact without a refinance? Speak with a lawyer or real estate loan professional to determine your best course of action.
Don’t Fall for a Foreclosure Scam
You may feel so desperate about your circumstances that you feel you have no choice but to call someone about fixing your problem. Unfortunately, there are many scammers waiting to take advantage of you and your need to stop a foreclosure from occurring. Scammers will often advertise that they can completely fix your problem as long as you pay a small fee, but there are very few organizations that can simply wave a magic wand and stop foreclosure in exchange for money.
Unfortunately, scammers can easily find the information they need to make a proposal to you since foreclosure information is easily found online and through listings in the local newspaper. Sometimes, a scammer won’t wait for you to contact them and will initiate contact out-of-the-blue. It’s essential that you avoid dealing with anyone promising to make your foreclosure disappear.
A foreclosure will never simply disappear and will definitely not go away simply because you start sending your mortgage payments to a scammer company.
Are You Worried About Home Foreclosure?
If you are considering filing for bankruptcy or facing home foreclosure, you may wish to download our free guide: 12 Things You Should Know Before Filing for Bankruptcy. While bankruptcy isn’t the answer to every financial problem, it may help you make a decision about your financial future. If you have questions about tax and IRS issues, contact us for a free consultation.
DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.