Don't Want to Lose Your Home? Here Are Simple Ways of Avoiding Foreclosure
Being forced to abandon your home because of foreclosure is a very traumatic experience for the whole family. It is never easy to lose your home thus it is very important that you find ways of avoiding foreclosure before it is too late.
No, it is not impossible to avoid foreclosure even if you have lost your job and you are having trouble making both ends meet. According to experts, avoiding foreclosure is just a matter of vigilance and ingenuity on your part. To help you dodge foreclosure and keep the roof over your head, here are some simple ways of avoiding foreclosure.
Prevent the Filing of a Notice of Default
Avoiding foreclosure will be a lot easier if that notice of default was never filed. Always remember that your creditors cannot foreclose your properties unless a notice of default has been filed against you. To prevent the filing of the notice of default, make sure that you get an insurance policy that covers amortization payments for your home.
Most insurance companies will ensure your home up to six months of amortization payments. This means that if lose your job and cannot pay the monthly amortization of your home, your insurance policy will pay the amortization and you get to keep your home for the time being. Never forget to make the monthly premium payments on your insurance though. Always remember that when you let your insurance policy lapse, avoiding foreclosure can become an ugly business.
Negotiate for Extension
If you never bothered getting a debt insurance coverage on your home, avoiding foreclosure may become a little bit trickier. Fortunately, even without an insurance coverage you can still buy some time and save your home by asking your creditors for an extension in your payment deadline. Never ignore that collection letter. People who ignore collection letters from banks and other financial institutions often lose their homes to foreclosure.
As soon as you received a collection letter from your creditors, tell your creditors that you are willing to pay then but since you are in a financial bind, it may take some time before you can get the money to pay for your debts. Negotiate for a payment extension. Most banks and financial institutions do not really like to foreclosure your home that if you give them some good reason not to foreclose your home, they will be glad to not to take your home away from you and your family.
