| By :
Mark Etinger
Foreclosure is serious business. You don't want to lose your home and have your credit permanently damaged. Read this article to understand how best to avoid credit trouble. 1. Don't Ignore Notices: If you receive letters from your lender, do not ignore them. Call your Loss Mitigation Department and explain why you are having trouble paying your debts. Have your financial information ready and be ready to describe your expenses and income. 2. Stay in Your Home: If you abandon your home, you will not qualify for help. 3. Contact HUD-Approved Counseling: These and government agencies can offer you help if you need credit counseling. They are usually free. To keep your home out of the hands of REO services and prevent it from becoming one of the many REO properties on the national market, here are some more options. 1. Special Forbearance: If you've experienced a negative change in your financial situation, or an increase in living expenses, you may qualify for a special repayment plan, a reduction, or even a suspension of your mortgage payments. 2. Modification: You may be able to extend your mortgage loan term or refinance your debt. If you have recently experience difficulties but have rebounded, this is a good option. 3. Partial Claim: If you need to make your mortgage current, you could qualify for a one-time payment from the FHA-Insurance fund. Your loan must be no more than 12 months late, but more than 4 months late. You also need to be able to make full mortgage payments after the one-time payment. 4. Underwater Sales: When your mortgage is worth more than your home, you are underwater. But if you are faced with the alternative of foreclosure, it's better to sell. If your loan is at least 2 months late, you can sell your home within 3 to 5 months, and a new lender-obtained appraisal demonstrates that your home's value meets the HUD guidelines, you may lose only a little bit of money, rather than a whole lot. 5. Deed-in-lieu of Foreclosure: If you want to save your credit, you can give back your house. You qualify if you have defaulted and the above options can't help, your attempt at selling your home underwater failed, and you don't have another FHA defaulted mortgage. Ultimately, your credit is more important than your home. Don't worry too much, what happens happens, and the least you can do is be honest to your lender and counselor. If you have questions about your options, seek assistance, and be wary of scams. Don't delay, but before you sign, make sure you understand what you are giving away. Good luck.
|
![[Valid RSS feed]](http://www.articlesbacklink.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
