My New Blog

Avoiding a Foreclosure

As they say your home is your castle and the last thing you want to do is have to surrender it. If you are facing this situation, I would like to share some thoughts with you to help you try to avoid loosing your home.

If you are unable to make your mortgage payment: 1. Access your over all financial situation Write down all your expenses and your income. Take a good look at all your expenses and see if you can cut out any in your budget. If you are facing a drastic situation you need to take drastic measures. Cut out things that you do not absolutely have to have. It is surprising how many things we have, that we think are necessities but are just wants. Things like going out to eat, cable TV, high car payments, (sell and get less expensive cars if possible), memberships, Get out of as much debt as you possible so you can make more funds available for you mortgage. Try to liquidate any extra assets such as a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Maybe get an extra job for a while to bring in additional income? Keeping your home should be your first priority. 2. Try to refinance at a lower rate If you are tied to a high interest rate or a high variable interest rate, look for ways to refinance at a better rate. 3. Contact your lender Lenders do not want your house. They have options to help borrowers through difficult financial times. They will many times help you if you contact them. 4. Open and respond to all mail from your lender. Make sure you do not just ignore notices from you lender. The first notices you receive will offer good information about foreclosure prevention options. Later mail, may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court. 5. Read Your Loan Documents Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws. 6. Foreclosure prevention options Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL . 7. Contact a HUD-approved housing counselor The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339. 8.Stay away from foreclosure recovery scams! Stay far away from any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.       Sam Orlando Broker/Owner, First Texas Realty email me at: sam@ftrealty.net Please Visit Us At: www.FTXR.com