Foreclosure Help Blog

Fighting foreclosure and Avoiding Scams

Millions of U.S. homeowners are having a tough time making ends meet and paying their mortgages on time.  Sometimes it is due to a sudden illness or unexpected job layoff, whatever the reason may be more and more people are facing foreclosure.

Reasons Why Homeowners Are in Foreclosure
More and more homeowners are barely able to cover their mortgage payments each month.  Most people are in an adjustable rate mortgage, which was a possible good deal at the time, due to the affordability, now these rates are changing and on the rise.  Fixed rate periods have come to an end and most likely their interests are going up and therefore increasing the monthly payment amount due for the homeowner.

Another reason a homeowner may be facing a mortgage default is that even though they have kept up with their payments in hopes of refinancing into a more favorable and stable loan program, they cannot because their home value has dropped below their mortgage balance, thus leaving them with no options.

What Can Be Done about Foreclosure
-Discuss your problems with your lender; see what solutions they might have for you.

-Talk to all your credit providers; see if they can lower some of your interest rates on credit cards to help you save money.

-Get free assistance by talking with housing counselors supported by HUD who provides the services to help homeowners avoid foreclosures.

-Consider selling house, paying off the mortgage and moving into a more affordable place to live.

-See you are eligible for a FHA (Federal Housing Authority) loan.  FHA approved lenders follow strict guidelines, which are designed to prevent foreclosure and assist homeowners in getting them into the right loans and through tough times so they do not lose their homes.  The FHA can help homeowners to refinance from an ARM increasing payment they can’t afford.  This program is known as the FHA Secure Loan Program.

-Consider bankruptcy as final choices, talk to a knowledgeable bankruptcy lawyer and see what options they have for you and how it can help avoid foreclosure or slow the process.

Watch Out For Scam Artists
Homeowners who are looking for ways to avoid foreclosure need to be aware of scam artists trying to take advantage of them.  People that charge your exorbitant fees and make promises to get you out of foreclosure by handling the paper work or making the phone calls, that likely the homeowner can do themselves.  Just be aware that there are people out there that will try and take advantage of people in their time of need, don’t sign over any checks or deeds to your house, do research on any company you work with and make sure they are legit.

In the end explore your options, try to work with knowledgeable people and you will get through the process.  It is not the end of the world if you are in foreclosure; there are solutions and options available.  Talk to friends and neighbors who may have faced foreclosure and see what advice they have to give.