Tips for Saving Your Home From Foreclosure

by WolffandHislop on February 20, 2012

If you are having difficulty making mortgage payments, there are several practical steps you can take to address the problem:

Realize That You Have A Problem and Begin Prioritizing Your Spending. The further behind you become on your mortgage payments, the more likely you will lose your home. If your expenses seem to be piling up, you need to review your finances and determine whether you can cut spending to make your mortgage payment a priority. Optional expenses such as cable television, memberships, and entertainment can be eliminated. Create a budget. Determine your income and expenses. Your budget should cut unnecessary expenses so that your expenses do not exceed your income. You may also delay payments on credit cards and other “unsecured” debts until you have paid your mortgage.

Contact Your Lender Early and Often. Despite popular belief, your lender does not want you to lose your home. If you fail to inform your lender of your financial difficulty early on, you may lose out on options provided by your lender to help you through difficult financial times.

Open and Respond to All Mail From Your Lender. Letters from your lender may contain important information about foreclosure prevention options. Mail from your lender could also contain important notices of pending legal action. You need to stay informed of all actions taken by your lender to take proactive steps to keep your home.

Foreclosure Prevention Companies. There are numerous for-profit companies that promise to negotiate with your lender. While these companies may be legitimate businesses, their service fees are often high (often one, two or three month’s mortgage payment). You should fully understand the services and promises being made to you by these for-profit companies. Request written verification of the services promised in writing. Before you spend money on something other than your mortgage, know what you are buying.

Contact a Licensed Attorney to Discuss Your Options. A licensed attorney can help you take stock of your financial situation and advise you regarding the best course of action. The attorneys at Wolff & Hislop are experienced at representing clients in bankruptcy matters and negotiating with lenders. Contact us today for a consultation.

Image: Danilo Rizzuti / FreeDigitalPhotos.net

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