5 Tips to Avoid Foreclosure Lakewood

Going through a foreclosure is not easy. However, since this is not something that happens unexpectedly, it’s possible to avoid foreclosure in Lakewood.

A foreclosure comes as a result of failure to make monthly mortgage payments. When you don’t respect your agreement with the mortgage lender regarding how to repay the house loan, the latter has the right to use any legal means to get back what you owe them, including evicting you from the house. But since this is not something that comes out of the blue, it’s possible to avoid foreclosure Lakewood.

In fact, any house owner has several options they can use to avoid foreclosure Lakewood. However, the number of options you get will depend on how bad you want to take care of the pending foreclosure – or rather how fast you act. You can tell when foreclosure is coming because it only comes due to one reason – lack of money. So, if you are, for one reason or the other, unable to pay your mortgage, here are 5 tips you can use to avoid foreclosure.

Don’t ignore the problem

The longer it takes before you find a solution, the harder it becomes to avoid foreclosure. This is a process that takes time and so are most of the options you have – they take time. With this in mind, making a single call to your lender won’t stop foreclosure. Since foreclosure can be predicted, it’s important to start looking for assistance from your housing counselor or mortgage company as early as possible.

Don’t wait for the lender to serve you with a notice before you start taking action. Once you feel that you may not be able to pay this coming month, start talking to them.

Find a HUD-approved housing counselor (agency)

Foreclosure is a legal process, but it doesn’t mean it will always involve the court. There are some instances where your lender won’t go through the court and others may need a court’s permission to proceed with foreclosure. No matter the case, you may find dealing with a foreclosure on your own quite impossible.

To make sure things work smoothly, find a housing counselor. This person will help you understand the legal side of things as well as the options you have to avoid foreclosure in Lakewood. S/he will also help you organize your finances as well as represent you in any negotiations if needed.

Respond to any communication from your lender

As repeatedly pointed out, foreclosure is a process. When you miss one or two months’ payments, your lender will try to contact you about the same. Whether it’s through mail or phone, the worst you can do is ignore them. It’s only through talking to your lender that you can actually avoid foreclosure Lakewood without too much hassle. Failure to communicate with your lender won’t be an excuse to stop the foreclosure process.

Check your spending habits

If you really need to keep the house, you might have to review your spending habits and prioritize the mortgage payments. A house is one of the most valuable assets anyone can own and losing it to a foreclosure is the worst, especially since this is something that can be avoided or even stopped right on its track.

When you check your spending or take any other responsible action that will help you save cash, it’ll be easier to make the mortgage payments and thus avoid foreclosure.

Keep your options open

Since you are the victim, you need to keep your options as open as possible, including being open to selling the house. Your lender will definitely not be keeping the house after foreclosure, instead, they’ll sell it and recover the money you owe them. Don’t let them do it for you, instead, handle the sale by yourself. Who knows, you might get a better deal for the house and use the money to pay off what you owe and move on, thus avoiding the foreclosure mark on your credit report.