How To Prevent Foreclosure

When you bought your house, you signed on the dotted line without reading all the fine print. Who reads all that fine print anyway? First of all, you'd need a magnifying glass to see it and second, you'd need a law degree to decipher it. Just realize you're not alone. There are many people who signed on that dotted line without fully understanding what they were signing. Like you, these people are finding that their interest rates on their loans have suddenly jumped and they are no longer able to make their payments. They're facing foreclosure. If you're facing foreclosure, which means the bank is coming to take back possession of your home, there are some things you can do. Most of the cases of foreclosure like you happened because of shady lending business practices. You should have been told what you were signing. But that's all in the past. You must work on securing your future.

Contact Your Lenders

The first thing you should do if you're facing foreclosure is contact your lender. If your lender is a bank, contact the bank and ask them if there's any sort of arrangement you can work out. You must realize that banks don't like to conduct foreclosures. They would rather have you stay in the house and make payments so they will do all they can to make things work. When a bank goes through a foreclosure, they risk that house remaining empty for some time. If they do sell it, they usually end up getting far less for it than you were paying. So ask them for help if you've fallen on hard times. You're not alone and it's likely they'll work with you.

Contact A Lawyer

If you've been the victim of lending fraud or shady business practices, you may have a case that you can take to court. Contact a lawyer and see if one will help you. Lawyers can be very expensive and most would think, "If I can't pay for my house, how am I going to pay for a lawyer?" While this may be true, some lawyers will work pro bono on your case, which means they won't charge you unless there's a settlement or a judgment in your favor. It's worth it to try so that you don't go through a foreclosure.

Don't Skip Out

The last thing you want to do is skip out when facing foreclosure. You could potentially ruin your credit for a very long time and lenders will be less likely to trust you with any amount in the future. Not only that, but you'll be out on the street with no place to go. So do all you can to prevent a foreclosure. Call the lender, call the bank, call a lawyer or you can even call and ask your church or local charity for assistance. Don't be too proud. Again, you're not alone. You can get through this. Just make sure you don't lose your house. After all, owning a house is a big part of the American Dream.