It will be hard to face up to the fact that you are in financial distress. But, if you don’t speak, then they will foreclose all that much faster. Facing the problem may be difficult, but you will have more options to deal with it if you face it now instead of later.
Find help. The federal government (as well as many state governments) has counseling options available for those who are facing foreclosure. These counselors can point you to government lending options that may help you. They can also provide you with information on what laws are in place about the foreclosure process. Each state has unique processes and timeframes on how the process is supposed to run.
Review your mortgage documents as well. There is usually a section in those documents that point out what your rights are as a borrower. You may think that the lender holds all of the cards, but that may not be all of the truth. Knowing where you stand legally is the first step in getting foreclosure help.
Take an honest look at your finances. Is there anything you can sell that will help you catch your loan up? A second car or whole life insurance policies are a couple of options to look at. Keeping a roof over your head needs to be a priority in your life at this point. Prioritize what you spend your money on. The mortgage payment needs to be the first item on your list of bills. Credit card payments and other unsecured loans can be put off for awhile, but mortgages should not be.
Can you get a second job for awhile in order to catch your mortgage payments up? Cut out all non-essential spending. Cable TV and high speed internet are easy points to eliminate. All of these options need to be explored. Knowing where you stand financially is the next step in getting a plan together to avoid foreclosure for the long term.
Avoid scams. There are tons of foreclosure scams out there. One common type is the scammer that claims to be an official representative for government programs that help homeowners in distress. Another tactic scammers use is to act as a middle-man between you and your lender. They will say that will negotiate to lower your interest rates or amount to be paid. In exchange though, you will need to make your payments to them instead of the lender.
Other scams include telling you to file for bankruptcy to stop the foreclosure or to sign over your property to them and they will make the payments for you in exchange for rent. Knowing what is real and what is a scam is a large step in getting foreclosure help.