Steps To Take When Your Home Is Listed Under Foreclosure Homes For Sale

If you’re facing foreclosure and expecting to see your home listed under foreclosure homes for sale, don’t panic. There are still steps you can take to save your home or at least lessen the blow. There are a few things worth noting before you totally lose hope.

Statistics on foreclosures

According to NeighborWorks, a nonprofit group that manages the National Foreclosure Mitigation Counseling program and funded by the federal government, approximately two-thirds of foreclosure notices don’t result in actual foreclosures. This means that homeowners just need to find among the many alternatives to foreclosure, among them, negotiating with their lenders. Calling your lender is the best way to determine these options, which could include loan modification, forbearance, or short selling your home.

Time is on your side

Saving homes from foreclosures

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We all know that the foreclosure process takes anywhere from two to 12 months. This time frame is dependent on how fast your lender acts and where you live as each state differ in their non judicial and judicial processes. The steps leading to the actual foreclosure sale can include a host of processes such as sending of demand letters, publication, and scheduling of a foreclosure auction. The point is, foreclosure can be a lengthy process, giving you ample time to think of alternatives and solutions.

Study the foreclosure laws in your state

Knowledge is power. Find out how much time you have. Find out the specific foreclosure laws in your state and the ways you can reverse a foreclosure.

Start reading the fine print

Review all mortgage documents and correspondence from your lender, including phone calls that you’ve received during the past 30 days. This should tell you the outline of the steps your lender has taken. Find out if there is a ‘power of sale’ clause, a provision that authorizes the sale of your home to pay off a mortgage after you miss payments.

Make that call

Just because you missed a mortgage payment or two and received a notice of default means it’s the end of it. Don’t call your lender and you’re sure to head the direction leading to foreclosure. Call the Loss Mitigation Department of your lender, take notes and note down names then make a call to an HUD-approved foreclosure avoidance counselor to know your state’s foreclosure laws and alternatives to foreclosure. These services are free of charge so there’s no reason for you not to seek help.

Nobody wants to see their homes listed under foreclosure homes for sale. As long as you act quickly and explore all your options, things will never get out of hand.

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