It's never easy to admit, but if you can no longer make your mortgage payments, you need to be honest with yourself. Doing so increases the likelihood of saving your home and leaving yourself in a better financial position later.
In simple terms, foreclosure comes about when you miss several mortgage payments and give your lender the impression that you have no plans of getting back on track. Digging deeper shows that there is actually more to the process.
If your mortgage is in default and you've received a notice of foreclosure, there's no time like the present to take action. There are many things you can do, with none more important than contacting your lender to discuss any workout options that are available.
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.
If you receive a foreclosure notice, your stomach will sink and your head will begin to spin. This is a natural reaction, as you know your lender is closing in on repossessing your home.
As a homeowner, there are not many things worse than receiving a foreclosure notice in the mail. If this comes, it's because you've fallen behind on your mortgage payments.
There are few assets that could even be considered more valuable than your home. Sure, your car and some valuable family heirlooms hold value, but your home is the place where you feel comfortable. It's where you live. It's where you raised your kids. Losing your home is disorienting in a way that few other things could ever be.
Bankruptcy can be incredibly helpful for those in debt. But we aren't naive -- it isn't a fun process. Going through bankruptcy can take time, while also taking an emotional toll on you. If you take the necessary steps and work hard at it, though, then you can come through the bankruptcy with an improved financial standing that allows you to start moving on with your life.