Even if you follow tips to save money, economic hard times fall upon millions of people around the country, and it’s nothing to be ashamed of. Unless you have committed gross-negligence towards your lender (i.e. mortgage fraud), you more than likely have a legitimate burden and that has caused you to default. Common factors include unexpected loss of jobs, unexpected illness that prevents one from working, divorces and lack of extra money to compensate for adjustable-interest loans that keep spiking. There’s always help, however.
Knowing your rights and responsibilities
If you are unable to pay your mortgage, first and foremost make it a point to let the bank know as soon as possible. Your main focus in the beginning is to make sure you do all that’s possible to avoid the bank’s notice of intent. If not possible to meet that deadline, then you still have (under law) 30 days before the bank can issue a formal Notice of Default.
Once you receive that notice, you’re likely to feel quite a bit of despair (as your time is very limited). However, from this point on, you have exactly 90 days to make things right. Use every second to make sure the home that you are so proud of does not get pulled out from under your feet.
· In your initial negotiations with your bank or lending organization, the bank will typically offer you options (after all, they to do not want to foreclose—because no one wins when that happens). If offered an option, such as the “note modification” if you have an adjustable-rate mortgage, and if you are able to meet the demands of it, accept it.
· If note modification is not an option, investigate alternative loans that are tailored for people in this situation. If you meet certain HUD criteria, you may even be eligible from a federal loan that helps people stay in their homes.
· Also, you will inevitably notice a myriad of different companies that offer services to help you stop foreclosure. Know in advance that many of these are scams, and to do your research on them before entering-into a contract or paying them any money.
Above all else, never give up until the “fat lady” has sung.
