Remember that foreclosure can result in the loss of your house, additional foreclosure fees, extra legal fees, and a decline in your credit rating.
Once your lender repossesses your home, you’ll probably find it more difficult to take your house back, which is why understanding foreclosure can help you improve your situation.
Here’s what not to do during foreclosure:
Don’t ignore the problem.
The moment you realize the problem, it’s essential that you take action immediately. Keep in mind that the more you ignore the issue, the more likely that you’ll be asked to move out of your house.
Don’t forget to communicate with your lender as soon as you recognize the problem.
Try to make things work with your lender. Contact them as soon as you realize the problem and try to explain your situation. Let the lender know of your financial difficulties and work things out together for possible solutions before you’ll lose your home.
Don’t forget to seek counseling
Seeking counseling is essential when you’re facing a foreclosure process. It can help you understand how you can keep fighting for your home. However, you should only be asking for counseling service from the list of your state’s approved housing counselors.
Don’t disregard court requests or documents.
While it’s understandably difficult to handle foreclosure matters, you should still be careful of your actions. Acknowledge any documents or requests coming from the court because your failure to do so may result in excessive fees and even legal concerns.
Don’t sign the title of the property in the name of another company.
Be watchful of those companies who will try to lure you in by promising to get the mortgage for you and re-sign it back over to you. Although rare, take note because this does happen. The truth is they will let the foreclosure proceedings continue, and later on dump your home. But what’s worst of all is that you can’t do anything because the property is no longer under your name.
Don’t disregard your mortgage rights.
Facing foreclosure proceedings can be discouraging. But this is not the right time to fret about it. Take a look at your loan documents and try to understand them. By doing this, you’ll know what your lender can do in the event you fail to make your payments.
Don’t fail to consider using other assets to reinstate your loan.
It’s no fun at all when you’re about to lose your home. More than anything else, your home is the most important thing you can give to your family. That’s why, if you have other assets such as a second car, jewelry or even an insurance policy which you may sell, make the most out of them to generate cash to reinstate your loan and to stop the foreclosure process.
Don’t hesitate to talk to a licensed attorney.
Foreclosure proceedings is a legal matter. If you want to have an in-depth understanding about your state’s foreclosure laws and the specified timeframes, it’s best to consult an experienced lawyer who specializes in handling foreclosure cases. Remember that talking to an attorney can help you protect your mortgage right, which a mortgage lawyer such as ones found here might be able to help you with.
We hope that the information mentioned above has provided you with some insights as to what not to do during the foreclosure of your home. While there are all available and honest means to save your home from foreclosure, it’s still essential to check your state laws to practice your rights. Lastly, don’t forget to exercise due diligence when seeking foreclosure help to prevent the situation from getting worse.
Daniel Grate is a professional writer in the law industry. She currently writes pieces on various law topics for the common reader. In her spare time she spends quality time with her family and friends.