If you receive a foreclosure notice, it's hard to devise a plan in a timely manner. With so much going through your mind, including the possibility of losing your home, it's not out of the question that you'll make a decision that puts you in a worse position.
Before you do anything, here are some of the most important foreclosure questions to address:
- What is the reason for the foreclosure notice? Obviously, it's because you have fallen behind on your mortgage payments. You want to dig around to find out why this happened. For example, you may realize that you have too much credit-card debt to comfortably make your mortgage payment as well.
- Will your bank help you prevent foreclosure? Don't assume that your lender wants to repossess your home. They'd rather work something out with you, so don't hesitate to ask. A mortgage modification may be within reach.
- Is it possible to sell your home? If you can no longer afford your mortgage payment, you may want to sell your home to escape trouble. This works if your home is worth more than you owe. If it's not, you'll need to consider a short sale.
Once you address these foreclosure questions, among others, it's easier to understand which steps to take. There may not be an easy answer to your financial problems, but there are solutions out there.
As you compare your options and learn more about the legalities of the foreclosure process, you will begin to feel better about the future. Despite your past problems, you have legal rights as a homeowner and you need to protect them.