In the first part of this blog series, we stressed the importance of maintaining strong, open lines of communication between you and your mortgage holder. Clear communication greatly increases your chance of delaying foreclosure until you can gain control of your financial situation. However, even if you don’t think you’ll ever be able to come up with the money to pay off your mortgage, good communication can keep you in your house for several more months.
If you’ve been in clear communication with your lender and worked through the various options that are available for resolving your mortgage debt issues, then you’ve done a lot to try and make the best of your situation. However, if it’s all been to no avail, it’s time to move on. (As a side note, we assume that mortgage modification and/or refinancing alternatives don’t allay your cash situation significantly.)
At this stage in the foreclosure process, it’s critical to understand your rights as a homeowner. Dig up the original paperwork on your mortgage (as well as all related contracts and documents), and familiarize yourself with your rights as a mortgagor.
Also, as you enter into the mid-stage of foreclosure, you might start receiving offers from companies that claim to offer solutions to your foreclosure issues. Avoid these companies like the plague. Unfortunately, many of them are scams, few are actually useful, and all of them will cost you too much money.
With all of the resources available online, as well as free/affordable HUD Foreclosure Counseling services, you should not do business with any questionable company that solicits to you.