Mortgage debt is no position for any homeowner, but it is a very real threat in today’s economy. As more people are struggling to maintain their mortgage payments, the possibility of foreclosure looms around the corner. If you are dealing with a financial hardship and are worried about the chances of foreclosure, there are a few tips you can follow to help minimize the risks.
It is very important that you do not stop paying your mortgage. Missing a single payment, or even being late by a few days, is enough to trigger the foreclosure process. Depending on your state of residence, the foreclosure process can be completely as quickly as 30 days. Once the process has started it can be more difficult to resolve the foreclosure.
If you are in real danger of missing a payment due to financial hardship, contact your lender right away. Getting in touch with your lender before missing a payment can help you pursue other options and possibly negotiate a deal to help you resolve your trouble and stay in the home. Many lenders offer solutions that can help either temporarily or on a permanent basis, but they generally prefer to negotiate before a payment is missed. Document all conversations and agreements with your lender for future reference.
If you have already missed a payment you may still contact your lender about negotiating a deal, but they may not be as receptive. At this point, it may be best to seek counsel from a bankruptcy lawyer or foreclosure attorney to review your options. A Chapter 13 bankruptcy can help you repay your mortgage debts and get back on track while keeping the foreclosure process at bay.Even if you haven’t received a foreclosure notification, having legal counsel on your side can better protect you and your home from the foreclosure process.
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