The idea of foreclosure is frightening for multiple reasons. Not only is foreclosure terrible for your credit score, it may leave you homeless. Particularly if you have children, losing your family home may sound like a nightmare.
The good news is that the only group that hates foreclosure more than the individual facing forclosure is the lending institutions themselves. You can help avoid foreclosure by taking action as soon as you realize you have a problem making payments. You should also make sure to stay in constant communication with your lender.
What should I do right away?
Keep in mind that the further you get behind on your mortgage, the more difficult it becomes for you to reinstate your loan. This means that you are more likely to lose your house. Taking action is paramount in a foreclosure situation. You should reach out and contact your lender as soon as you are aware you will not be able to make your mortgage payments.
Again, remember that lending institutions are not interested in taking your house. What they want is for you to be able to pay your mortgage. You will find that lending institutions are very willing to work with clients who are active and willing to negotiate.
What should I keep in mind about communication?
It is likely that your lender will start to contact you through the mail if you do not make your mortgage payments. You must open and respond to all of this mail, particularly since if the situation gets worse it may include notices of legal actions. Remember that not opening your mail is not an excuse in foreclosure court for non-payment.