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Steps to Take During Foreclosure

Are you facing foreclosure? It can be a trying time, but don’t panic. There are steps you can take to save your home or to lessen the blow of losing it.

Of the millions of foreclosure notices sent out each year, only one in three results in an actual foreclosure. Many homeowners are able to find alternatives by negotiating with lenders, and if you’re facing foreclosure, your lender may have options to help you like loan modification, forbearance, or a short sale.

Foreclosure is a Lengthy Process

The entire foreclosure process can take up to a year, depending on where you live and the types of processes required in your area. The lengthy process gives you time to come up with an alternative solution. If you intend to salvage your home, stay up on payments for your homeowners insurance and property taxes, otherwise your problems could compound if you are hit with a casualty loss or tax lien.

Look at the Fine Print

When you receive your foreclosure notice, start off by reviewing any correspondence from your lender, whether it be letters or phone calls. Also review your mortgage documents to see what steps your lender can take during the process. Something to look out for is a “power of sale” clause which allows your lender to sell your home to pay off a mortgage after missed payments.

Pick Up the Phone

Receiving a notice of default doesn’t mean it’s time to throw in the towel. Foreclosure isn’t always set in stone, but if you don’t call your lender it quickly will be. Call and ask for their Loss Mitigation Department, taking notes and recording names as you go.

Next, call a foreclosure avoidance counselor that is approved by the US Department of Housing and Urban Development. They can explain your state’s foreclosure laws and discuss alternatives, all free of charge. They can even represent you in negotiations with your lender.

Let your lender know that you’re working with a counselor. It lets them know you are serious about getting back in good financial standing, and it’s proven that homeowners who receive counseling cut their risk of losing their home nearly in half compared to those who don’t seek counseling.

Remember, when foreclosure threatens your home, all hope is not lost. Don’t panic. Instead, collect your thoughts and take every step possible to improve your situation.

For more information about foreclosure, or to see how the BCN Law Firm in Clermont can help you, call us today at (352)-394-2103.