Foreclosure Can Happen To Anyone

Foreclosure can happen to anybody, so don't think badly of yourself if you are now at risk. I know it's terribly embarrassing to find yourself in this position. Since notices of default are usually published, you really hope your neighbors and relatives aren't reading the papers. It's also very scary when you think of your family and all of your belongings out on the street. Don't worry. Listening to the news it sounds like half the country is in the same boat. Heck, look at Ed McMahon. If he can lose his house, anybody can. He's not the only star in foreclosure either. Just keep your head together and take it one step at a time.

It is a fact that any family can undergo some financial crisis at some point in time that would regrettably cause them not to have the ability to pay their monthly mortgage payments. A home can be an enormous investment and maintaining your home can turn into an even greater expense. Chances are things will break here and there and thanks to Murphy (Murphy's Law), usually when you are at your lowest financially. When this happens, you might feel as though your world is spiraling out of control. You can not seem to get your debts under any type of management and now you need to make repairs to the house. Your mortgage, being the biggest part of those debts, may have just adjusted and all of a sudden your house payment has moved into the "can't pay right now" pile. Foreclosure is something that can happen and when it does, you might feel as though you have no other options.

I am hoping that I can help some of you learn more about the different options that you do have when it comes to saving your home from foreclosure. There are many options for anyone who is struggling with the thought of trying to get caught up on their monthly payments. If you can look in the right places, you are bound to find something that sounds quite reasonable to you. You will find that there are many different websites available to you over the internet that can provide a great deal of helpful information regarding foreclosure. They also provide details about some of the different things that you yourself can do that might potentially prevent having your home taken away from you. If you allow yourself to stress out about it, then chances are you will not be able to think clearly enough to get the appropriate things accomplished. In California you have 120 days from the date the lender files a notice of default until your house is sold on the courthouse steps. It's important that you work in a very timely manner.

Don't bury your head in the sand. Take time to speak with your mortgage lender about the payments you're behind. They could possibly choose to work something out with you. Many lenders have programs that will catch up your back payments a little bit at a time, added to your regular monthly payment. This solution is usually more for someone who has just had a temporary setback. After all, if you could pay more than your regular payment, you probably wouldn't be in trouble, would you?

Ufortunately, times like these bring every con there is out of the woodwork. There are different companies that might claim that they can help you out with your foreclosure threat. Please make sure that you thoroughly investigate them and don't be afraid to ask for references. Many times those guys are totally not legit and will just end up ripping you off, causing you even more problems that you do not want. Be sure to take any contracts to a Real Estate lawyer or your Realtor if someone is offering to pay your back payments. You may just be signing over title to your house and not even realize it.

Lenders will swear they can help you refinance just to find out 30 wasted days down the road they can't really do anything for you at all. Many "hard money" lenders will promise you a refinance even if "you have bad credit". The interest rates on those loans are so high, you just end up burying yourself deeper.

Really, one of the best places to start is by speaking with your own mortgage company today. If you are struggling or getting behind on your monthly payments, they should be able to discuss with you some options for catching things up. They seem to be a little more co-operative these days since they have so many more foreclosures on the books. They can possibly re-write your loan, maybe hold off your adjustable loan adjustment for a few months, etc.

If you are tired of fighting it, you may decide you want to sell. These days many people are living in houses where there is more owed on the property than it's worth. Your lender can also help you with what they call a "short sale", where they will settle for less than is owed to get the property off their "worry list". If you decide to take this option, be sure and speak to your accountant. Even tho you won't be making any cash on the sale, there are usually tax consequences you should be aware of.