El Paso residents are well aware of the numerous foreclosures in the housing market in the past few years. While the economy is slowly improving, there are still people that are struggling to pay their mortgages and save their homes from foreclosure. If you are one of those people, here are some valuable tips that might help you.
The first and most important thing you need to do is to tackle the issue. Too many people get behind in their mortgage, and don’t address it until they are so far behind, there is no chance of catching up. This applies to other debts as well. Contact your lender as soon as the problem starts. Lenders have many options available to you that doesn’t involve losing your home.
Most lenders will work with a borrower as long as the borrower is making a good faith effort. Don’t throw your mortgage statements and letters in a drawer unopened because you don’t know what to do about them. Once you have spoken to someone and know your options, you will feel a load lifted from your shoulders.
Review your original loan documents to know what steps your lender can legally do. If you are not sure, consult with an attorney who deals in real estate. He or she can also make sure you know your rights and options, and can even work with your lender if you so desire.
Learn about foreclosure prevention options available to you both from your lender and an attorney. If one can’t help you, the other one probably can. Just a few of the options available to avoid foreclosure are: loan modification, short sale, deed in lieu of foreclosure, partial claim or second mortgage or even bankruptcy.
You can also brainstorm on ways to get your finances back on track. There may be quick ways to raise the cash you need to catch up, such as selling an item you no longer need or having a garage sale. If this is an option, make sure you have a budget that will work going forward.
Just remember, grasping the bull by the horns and taking control of the situation is the most important thing you can do. Once you know your options, you can make decisions to be in control of your situation.
Source: KeepMyTexasHome.org, “What if you are unable to make your mortgage payment?” accessed Mar. 04, 2015
