How to stop foreclosure from happening to you
One of the most dreaded things that can happen to anyone is
getting behind in your mortgage payments and going into
pre-foreclosure. Yes you heard me right, pre-foreclosure. What
normally happens when people miss a few mortgage payments is the
back sends them a legal notice that they are in breach of their
mortgage. This is when the pre-foreclosure process starts.
Basically the notice will tell you to either make up the
payments immediately, or the bank will be forced to foreclose on
the property. Remember, the last thing the banks or lenders want
is a property to deal with, they only want their money. The
simplest way to keep yourself out of foreclosure is to pay your
mortgage first before all your other bills. You are more likely
to succeed dealing with a collection agency then you are with
the banks and their lawyers. When you miss a mortgage payment or
two, you are actually forcing the banks to start proceedings.
The worst part about being foreclosed on is what happens to your
credit rating. It really takes a beating and it could take 7
years before your credit report is half decent. So what can you
do to stop going into foreclosure. Some simple rules to follow
are, if you miss a payment, call you bank immediately and set up
an appointment to speak to a lending officer or the manager. The
worse thing you can do is ignore their phone calls or letters.
If you get in touch with them, they will know you are sincere
about working out a plan that is a win win for you both.
Contacting them immediately may also put a stop on the
foreclosure. Remember, they want their money, not your house.
Most banks will be happy to work with you if you let them. Often
what happens is people won't give them the chance and
subsequently, they lose their home. In order to keep your self
out of financial trouble, be careful not to extend yourself with
a large mortgage. Only buy within your means versus what you
really want. We all want a bigger home, but that doesn't
necessarily mean we can afford one.