If you are facing the loss of your home now or far enough delinquent in your bills to worry about it, getting foreclosure relief needs to be your first priority. The worst thing you can do is avoid dealing with your financial hardship. One of the most common mistakes people make is refusing to speak with their banks when they call.

It will be difficult to face up to the possibility that you are in financial distress. But, if you don’t face the problem, then the bank will foreclose all that much faster. Facing the problem may be difficult, but you will have more options to deal with it if you face it now instead of later.

Find assistance. The federal government (as well as many state governments) has counseling options available for borrowers who are facing foreclosure. These counselors can help you find government lending options that may be right for your situation. They can also provide you with details on what laws are in place about the foreclosure process. Each state has unique processes and timeframes on how the process is supposed to run.

©kyle flemming - flickr

©kyle flemming – flickr

Review your mortgage paperwork as well. There is usually a section in those documents that list what your rights are as a homeowner. You may believe that the lender holds all of the cards, but that may not be all of the truth. Knowing where you stand legally is the first step in solving a foreclosure.

Take an honest look at your finances. Are there any assets you can sell that will help you catch your bills up? A second car or whole life insurance policies are a couple of options to look at. Keeping a roof over your head needs to be a priority in your life at this point. Prioritize what you spend your income on. The mortgage payment should be one of the first items on your list of bills. Credit card payments and other personal loans can be put off for awhile, but mortgages should not be.

Can you find a second job for a while in order to catch your mortgage payments up? Cut out all non-essential spending. Cable TV and high speed internet are easy bills to reduce. All of these options need to be explored. Knowing where you stand financially is the second step in getting a plan together to stop foreclosure for the long term.

Avoid scams. There are numerous foreclosure scams out there. One common type is the scammer that presents himself to be an official representative for government programs that help homeowners in distress. Another tactic scammers use is to act as a paid negotiator between you and your lender. They will say they will negotiate to lower your interest rates or amount to be paid. In exchange, though, you will need to make your payments to them instead of the lender.

Other scams involve telling you to file Chapter 7 or 13 bankruptcy to stop the sheriff sale or to sign over your title to the scammers and they will make the payments for you if you pay them rent. Knowing what is legitimate and what is a scam is a large step in getting foreclosure help.

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