Foreclosure Prevention

I just learned of a web site with a lot of good information for all. Here is a copy of a post about foreclosure prevention and a link to the site below. I hope you find it useful.

We have all read the facts related to foreclosures and how they are rapidly increasing. In 2009, 2,824,674 properties nationwide were in default and that number appears to be increasing. This is alarming and can be devastating for families that find themselves in this situation. Avoiding foreclosure is not easy and there is nothing that will make it feel any better to those that are going through it. It’s a difficult and challenging time of life that can only be described as something that you have to force yourself to get through. Knowing that there are millions of others going through the same thing is not overly helpful as in the end, you and your family are directly impacted and need help. We put together this list of 10 tips to avoid foreclosure in an effort to try and offer some advice that you may not have thought of if you find your home in jeopardy.

1. Don’t just ignore your problems hoping that they will go away. Unfortunately problems with credit (credit cards, loan, etc.) and especially a mortgage don’t go away they simply get worse if you attempt to ignore them. So first you have to be committed to tackling this problem head on.
2. Contact your mortgage company as early as possible when you realize you have a potential problem making your payments. This is the quickest way to get relief even if you have to really work hard to convince them to work with you. You want to ask them about any deferred payment programs or anything else they might have in place that could help you at least temporarily.
3. Refinance your loan if possible. If you have equity in your home, then refinancing your loan over a longer period can dramatically reduce your payments. You may also want to consider a home equity loan or a debt consolidation loan to try to reduce your total monthly payments (credit cards and other loans can be rolled together).
4. Be responsive to your lender by opening and responding to all correspondence and taking their phone calls as difficult as that may be. Don’t be tempted to throw away those letters, screen calls, or delete those phone messages as it won’t make them any more likely to work with you.
5. Leverage other assets as best you can (jewelry, a second car, etc.). As difficult as these can be to part with, what is more important than your home and providing shelter for yourself and your family?
6. Look to friends and family for any monetary assistance they can provide especially if this is a temporary problem. They are the most likely to understand and be willing to help you through this difficult time.
7. Get a roommate if that is an option or see if other friends and family are facing a similar situation and are willing to live together at least for a while to help reduce expenses for all involved.
8. Avoid foreclosure prevention companies. Most of these are simply going to try to get money from you to act on your behalf with your lender(s), which you can already do for yourself.
9. You need to learn your rights under federal and/or State law. Know whether or not your State protects your home in a bankruptcy, etc. Just be clear as to what your options are to get out from under your debts in the event you exhaust all other possibilities.
10. Look into a short sale and see if your lender will work with you to satisfy the home debt that way (of course you still end up looking for a new home). However, it can be a way to avoid bankruptcy and still salvage your credit.

http://www.changeofaddress.org/blog/2010/10-tips-to-avoid-foreclosure/