©dialabank.com - flickr

©dialabank.com – flickr

If you are trying to avoid foreclosure there are some definite things you should not do.   This article will tell you all about the steps you should avoid if you really want to stop that foreclosure.  It is important to know what to do and also viable to know what not to do, if you want to quickly and smoothly save your home from foreclosure.

Hopefully reading this article will give homeowners some new ideas on how to avoid foreclosure early on.  Please review over the part one and part 2 article if you want to learn about having money saved up for an emergency, home equity line of credit, not missing a mortgage payment, asking for help, not avoiding the lender, and when you think you have no problems and think you have no options.

8. Don’t spend money on other bills. After missing a couple mortgage payments your lender may accelerate the home loan.  This means they will no longer take a single monthly payment; instead they want everything you owe.  While it is possible to fine other options instead of paying it all the main mistake people make involves how they allocate what cash they seem to have.  Most people just start paying other bills and give up on paying the mortgage, because they don’t have all the back payment.

In the big picture this is a mistake, as some point you will probably need those funds to save your house.  Sure you may be getting several annoying phone calls from creditors demanding money, but you have to decide which is more important to you.  If you want to keep your house and you cannot pay all the back mortgages the lender demands, then you will need to look into other ways to stop foreclosure.

9. Do not stop making payments. If you missed one of your mortgage payments and now it is the next month and you have another one due, don’t skip out on it, if you have the money.  If you have the money to pay half of what is past due then pay it, until the bank refuses to take your money consider making what payments you can.  This will at least show the bank that you have good intentions to pay them off and maybe they can help you out.

The most important aspect is if your over four months behind and you made two payments you may only be 60 days behind, that may keep the bank from foreclosing on you.  Keeping in touch with the bank and making some payments can help delay foreclosure for several months.  Hopefully in that time period you can find away to come up with the past due amount that you owe.

10. Do not miss bankruptcy filing deadlines. If you really need to delay foreclosure, then proper filing of chapter 13 bankruptcy will put a halt on the process.  A chapter 13 plan is where the debtor comes up with a way to pay all the payments under the plan; the foreclosure may never start again.  Unless the creditor fails to make the payments promised under the chapter 13 plan.

Keep in mind that you must file on time; you may have a deadline, which can cost you, your home.  Also you must always stay on top of the payments required under the plan, if you fail to do so you will be in foreclosure again.

Hopefully all the tips in this three part series, gave you a lot of good ideas on what not to do when try to avoid foreclosure.  The best route to go is to start learning these options early on, like as soon as you buy your home.  So you know what needs to be done, right away and you can take the right steps to prevent foreclosure.

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