©Frederick Homes for Sale - flickr

©Frederick Homes for Sale – flickr

If you are in foreclosure and trying to stop it, you know that time is critical and need to make use of how much you have.  The best way to do this is to make sure you are taking the right steps toward stopping the foreclosure.  Otherwise you will just be spinning your wheels and maybe spending several hours working with people that can’t really help you.  Read on to make sure your taking the necessary steps toward foreclosure prevention.

Most banks don’t want to close on people, if they can help them; this is because on average it cost a bank around $40,000 to foreclosure on one home.  So you can imagine that most lenders will try to help you if you are aggressive about preventing the foreclosure in the early stages.  With all the foreclosure in America and homeowners that are upside down on their mortgage, the lender cannot help everyone; this is why you want to get on it, early on.

1.    First step is to call your lender at the first sign that you are going to or have missed a payment on your mortgage.  The earlier the communication with the bank the better chance you have of them finding options to stop the foreclosure.

2.    Do not call the collections department, they won’t be of much service to you and will end up just wasting your time.  You want to call the loss mitigation department, they are the ones trained to handle distressed homeowner’s situation and better yet they have the authority to make you a deal.

3.    Make sure you have all of your financial information ready for you lender.  Don’t go to them empty-handed; be prepared to discuss your financial problems with you.  You need to prove to them that you really cannot pay the amount owed on your mortgage.  Banks want to get paid, so you really need to be able to prove that you have fallen on stressful financial times, show them how long you have had problems and how long it will last.

4.    Know what options the lender may offer you before you go in to talk with them.  This means do your research on things such as second mortgages, loan modification and forbearance plan.  You want to get familiar with your options so you can intelligently discuss them with the lender.

5.    Know whom to turn to for help, if your lender can’t do anything for you.  Talk to your neighbors and friends that may have faced foreclosure and see how they got help.  There are many foreclosure relief companies that can offer you help, you just have to research which ones are legit and can actually help you.  Talk to a foreclosure attorney and see if they have any ideas that can help you.

6.    Know what options are available to you if you can’t stop the foreclosure.  This means getting familiar with the foreclosure proceedings and what the process will be.  If you do not have the power to stop it at least you will be informed on what is coming and how long you can stay in your home for.

Hopefully these steps will help you overcome foreclosure.  Just keep in mind that taking these steps early on in the foreclosure process, you will have a better chances and stopping it.

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