4 Actions You Should Take When Facing Foreclosure

8 March 2015
 Categories: Law, Blog

When facing foreclosure, you have some options available to you to retain ownership of your home. It is important that you take action as soon as possible so that you can exercise all of your options. Here are actions you need to do once you fall behind on your mortgage. 

1. Review Your Financial Status

One of the reasons that people fall behind on mortgages is a lack of awareness of their financial status. You could be spending money in some areas that do not require as much financial support. 

Sit down with every person that brings money into your home and go over your expenses and income earned. Take some time to determine if there are some areas you can decrease funding in so that you can apply more towards your mortgage. 

2. Talk to Your Lender

In many instances, lenders do not want the homes back. In fact, they would prefer to be paid the amount owed on the mortgage. With this in mind, your real estate lawyer can talk to your lender about a loan modification.

The modification can result in a number of possible outcomes including a decrease in the interest you owe, a chance to catch up on your arrears, and a more realistic payment that you have a better chance of paying in the future. 

Before contacting your lender, your lawyer can review your financial status with you to determine if you have a solid budget in place that would allow you to make payments in the future. 

3. Ask for a Forbearance Agreement

If the situation that has pushed you into being behind on your payments is temporary, ask for a forbearance. The forbearance could temporarily suspend your mortgage payments for an agreed upon period of time. 

At the end of the forbearance, you would be expected to start making payments again. With the forbearance, you do not have to worry about losing your home and you have a chance to get back on your feet financially.

4. Check Out Government Programs

There are some government programs available that are aimed at helping homeowners keep their homes. You might have to meet certain requirements for assistance, such as attending a budgeting class, to qualify for assistance. 

Your lawyer can help determine if you are eligible for any programs in your province. 

A foreclosure does not automatically mean you are going to lose your home. In some instances, it is a chance to work with your lawyer and lender to get your housing situation under control. Remember, the sooner you take action, the more options you have to explore. To learn more, visit Robert Rose Law Office