A Few Tips to Avoid Foreclosure

Guest blog by Kevin Craig

If you are behind with your mortgage payments and facing a foreclosure, it is obvious you are puzzled and do not know how to react and proceed after receiving a Notice of Default. Unfortunately, after receiving a Notice of Default, most people do the worst thing, which is to do nothing and hope for the problem to somehow get resolved. However, the truth is, if you don’t contact your lender immediately after getting the Notice of Default, you won’t be able to solve the problem and will certainly lose your home in a foreclosure. Below are some basic tips on how you should deal with your lender and prevent a foreclosure.


1)  Approach your lender immediately. The sooner you do this, the more chances there are that the lender will agree to work out a solution. Try to convince the lender that you are willing to pay off your mortgage debt, but due to recent financial hardships, you are facing difficulties in making your mortgage payments. However, you will be glad to know that due to the recent foreclosure crisis, many lenders have now started special programs to help you make up payments and avoid a foreclosure.

2)  Call the National Foreclosure Prevention Hotline at 1-800-995-4673, or visit them at www.hopenow.org. If you call them, they can delineate all your options while facing a foreclosure and will certainly help you find the best solution for your problem. However, do not stop communicating with your lender.

3)  Always give a prompt response to any legal notice from your lender. If the lender feels that you are willing to shed off your mortgage debt, they might not take any immediate action against you.

4)  For your protection, go through the foreclosure laws of your state. Know your rights. The Foreclosure Prevention Hotline can help you understand these laws. Contact them at the link above.

5)  Sell other assets if you can. Can you sell your car or your wife’s ornaments to make your payments toward your mortgage? Know that your home is the most important thing for you. If the lender notices that you are taking every necessary step to pay off your mortgage, he may not immediately take steps toward foreclosing your property.

6)  Don’t fall into the foreclosure assistance scams. Overlook any unsolicited communication (mail or phone call) asking you to get enrolled in their foreclosure assistance program. As there are many scam entities, remain cautious to avoid them.

Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 892-1998 if you are looking for a home loan in North Texas and Southern Oklahoma.