What Homeowners Need to Know When Facing Foreclosure

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Faced with tough economic conditions, some homeowners might face problems making their mortgage payments. They could be either falling behind on the payment schedules or might be in default stages. Property owners affected by Birmingham foreclosures or elsewhere in the United States might feel overwhelmed, but the sooner they seek help, the better.

Timely action is of primary importance

Faced with such a situation, the homeowners should act immediately and call their lender and ask for help. Time is of the essence; the more you procrastinate asking for assistance, the fewer the options you might have. Timely action and advice is necessary to save your home.

Some actions that need to be taken are:

  • As soon as you realize that you will default, call the lender and ask assistance for solutions.
  • Keep in constant contact with the lender. If you do not answer mails or calls, the lender will take legal action in all likelihood.
  • Answer all the lender’s probing honestly and provide the necessary information. But remember to keep copies and records of everything you have provided.
  • Consult a housing counselor and get the necessary advice from him. This way you can understand what to expect, when you fall behind on the mortgage payments and also the options available to you to save your home.
  • The counselors will also advice you on your rights under the law as far as your home and mortgage are concerned.
  • They might help you find free legal help in your town. They can verify your mortgage documents and advice you accordingly.

The most important thing to beware of is foreclosure scam. Never get your loan documents modified for a fee to save your home. This is illegal. Do not believe anyone who says they can  help you refinance your loan.

Some legal experts advise selling the property when faced with such a situation. You might be selling short, but this is worth trying if it is a legal sale. The procedure followed by each lender is different. It largely depends on whether, you have mortgaged your property for the loan or if there is a trust deed involved.

The best way forward is to consult an attorney, who is experienced in these matters. But be honest with him about the situation and consult him every step of the way, once you have hired him.

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