In order to start a new life on your own, you need to get a new home for you. You may not have enough money for buying the home that you want, so you find yourself forced to borrow money from mortgage lenders. Some people can make their payments while the others fail to pay what they owe and this makes them threatened to lose their homes and be at the risk of what is called foreclosure.
But what does the word “Foreclosure” mean?
Foreclosure is a legal process in which your property is taken from you. The mortgage lender from whom you borrowed money for your property is given the legal right to seize this property that you possess and take it because you stopped paying the money that you borrowed from this lender. The mortgage lenders are not automatically given the right to seize your property when they resort to law or court and this gives you the chance to try to solve the problem and save your property from being seized. So, how to avoid foreclosure and make use of the chance that you still have to save your home before it becomes too late?
– Do not ignore the foreclosure complaint and try to attend the hearing because this makes the mortgage lender lose the chance to win quickly and it will lower the possibility of increasing the problem between both of you.
– Try to find a defense that prevents the mortgage lender from winning and write it as an answer to the foreclosure complaint.
– Offer to pay the money that you borrowed from the mortgage lender or show that you do not have enough money to pay what you owe through filing your bankruptcy.
– Try to reach a compromise with the mortgage lender to save your property from being seized.
– If you can pay the money that you owe, then set a plan with the mortgage lender as it can help you to delay foreclosure proceeding or entirely stop it.
– When you find yourself stuck and cannot solve the problem on your own, look for a lawyer to help you and show you the best and fastest way for solving this problem. Hiring a lawyer will cost you money, but it is better than losing your property.
– Try to make money to pay what you borrowed from the mortgage lender and to do that you can follow these tips:
1. Reduce your expenses.
2. Focus on the necessities instead of wasting your money on other amenities and vacations.
3. Look for a part-time job to increase your income.
4. Make paying the money that you owe one of your priorities.
5. Specify your needs to make it easy for you to know where your money goes.
6. Do not ignore paying the bill of your credit card because it increases the required fees, interest and reduces the credit score that you get.
7. Try renting a room or more in your home for a limited time to those who look for a place to stay in.
– Negotiate reducing the payments with the mortgage lender according to your financial conditions.
– Try to persuade the mortgage lender to increase the length of the offered period for making your payment or to decrease the interests.
– Ask the government for helping you through the programs that it offers for helping homeowners who suffer from financial hardships and are threatened to lose their home.