CHAPTER 7 How to Avoid Foreclosur eclosure (Other Than Selling)
You don’t always want to (or even need to) sell your home when faced with a foreclosure, especially if you aren’t too deep into debt. So, then, what can you do to salvage your home?
COMMUNICATION
The first thing you need to do when you realize that you’re not able to continue making your mortgage payments is to communicate with your lender about your financial situation. Find out from your lender if there’s anything that can be done to salvage the situation. Lenders generally want to avoid foreclosure, but will file a Notice of Default to protect their interests, whenever necessary. Why wait for the lender to notify you of the problem? If you realize that you will fall behind on your mortgage payment, then call your lender immediately. Don’t ignore notices from your lender and wait to talk to them when you’ve sunk in too deeply. Speak with a real estate attorney or HUD housing counselor to see where you stand. Housing counselors will help you make sense of the law as well as your options at the time. A counselor will also help you organize your finances and negotiate with your lender on your behalf.
FORBERANCE
Sometimes your financial crisis may just be a temporary setback and you could well be back on your feet soon. For instance, you may have lost your job, but you’ve managed to get another one, so 36
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