Foreclosure Tip #1: Make Sure Your Lender is Following the Law
Financial lenders have specific protocols they have to follow when they accept payments, collect debt, or serve notices. If your lender hasn’t properly notified you that your home is facing foreclosure, you can petition to delay your foreclosure. They are supposed to send you a notice through certified mail to your most recent known address in a timely manner to give you enough time to consider your options.
One thing to note: you won’t be able to stop the foreclosure altogether, but you can delay the foreclosure to give yourself more time to assess your options.
Foreclosure Tip #2: Request a Loan Modification
It’s very tempting to avoid your lender at all costs whenever you can’t make your payments. You might think there’s no point in talking to them if you can’t afford the payments, and no one likes to feel like they’re being harassed.
However, it’s important to keep an open line of communication with your lender because this increases your chances that they will work with you. One opportunity that you might gain is the ability to modify your current loan, allowing you to keep you home.
You might be able to extend your loan or lower the amount of interest you pay, both of which could lower your monthly payments to a cost you can afford.
Foreclosure Tip #3: Ask for Temporary Help
Similar to modifying your loan, you can also request forbearance from your lender, which means they will lower your payments for an agreed period of time or simply not require you to pay them during that time.
Taking this route simply buys you some time to get caught up on your finances and helps you avoid foreclosure. However, those payments don’t go away, meaning you will end up adding more payments to your total loan.