Going through a rough economic and financial time is sometimes unavoidable. At times, one might fall behind mortgage payment. It is advisable to do the necessary steps to avoid foreclosure and save your home. It’s important to note that even your lender is not interested in owning or repossessing your home, and they are pretty willing to work with you on a plan to maintain your mortgage payment plan and keep your home. These steps are taken in conjunction with their lender and eventually avoid an imminent foreclosure. These steps will assist you in stopping the foreclosure from happening.
Gather and Consolidate All Your Loan Documents and Open a Case File
It’s essential to get your finances organized with the potential of an eminent miss in mortgage payment or failure behind your payment. It’s advisable to set your record in order and get your essential documents in a file. Include verified copies of the deed of trust and other promissory notes, including monthly payment statements and property tax information. There are other important documents one should not miss to include in their files, such as insurance information and escrow statements.
Understand Your Legal Rights as a Home Buyer
With all your documents ready and in a file, it’s now advisable to equip yourself with possible outcomes when you fail to pay your monthly mortgage rates. This information will most importantly get found on the deed of trust and the promissory note. Gather all necessary information on reinstating the late payments past due amounts and your reinstatement rights as a homeowner. The fees and the interest charged during the period one has fallen behind on their payments will also be available on the deed of trust. It’s important to note that the federal law requires that any mortgage firm start the foreclosure process after the client has failed behind in payment for about 120 days.
Have Your Financial Statements and Information Organized
Combined with all your loan documents, it’s advisable to put together all the necessary financial information that will allow you to set up a case with your mortgage firm. This financial information includes any bank statement, federal tax returns, and other supporting documents that demonstrate financial income, such as rental income, alimony, or social security. Your total monthly income will allow your mortgage firm to get into a partnership with their clients on possible payment terms during hard financial times.
The possibility of your home being foreclosed upon is scary. However, there are steps you can take to protect your assets. Remember the above tips when you are struggling financially and contact a bankruptcy law attorney if bankruptcy sounds like it could be the best option for you.