SAHBA Home Hints
November 11, 2007
Tips to Avoid Foreclosure
In the event of a financial crisis, there are several steps you can take to prevent foreclosure. If you're having trouble keeping up with your mortgage payments, avoid foreclosure by staying informed and utilizing some simple prevention tips.
“Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely you will lose your home,” said Debbie Brown, Senior Mortgage Consultant at PRMI, Inc. (FN).
“Once you've acknowledged you have a problem, contact your lender. Lenders don't want your house; they want to help you through difficult financial times,” said Brown.
Open and respond to all mail from your lender. The first notices will offer good information about foreclosure prevention options. Later mail may include an important notice of pending legal action. Failure to open mail will not be an excuse in foreclosure court.
When dealing with these issues, know your mortgage rights. One helpful source about foreclosure laws and timeframes in Arizona is the State Government Housing Office.
When in a financial bind, the U.S. Department of Housing and Urban Development could provide free or low-cost housing counseling.
“Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender,” said Brown, a SAHBA member.
Demonstrating to your lender you are willing to make sacrifices to keep your home can make a difference. If you have a second car, vacation home, or other assets that you can sell, you can show your willingness to help reinstate your loan.
Brown advises avoiding foreclosure prevention companies. Hefty fees to fight foreclosure can be effectively spent on your mortgage payment. Prevention help services can be provided for free by your lender or housing counselor.
Also, protect your house from foreclosure recovery scams. If firms claim they can stop your foreclosure by signing documents appointing them to act on your behalf, you may lose the title to your property and become a renter in your own home.
“Never sign a legal document without reading and understanding the terms,” said Brown.
Avoiding foreclosure is possible if you communicate with your lender; know your deadlines, and your loan.
Details: Brown at (520) 850-8487 or Debbieb@primeres.com.
SAHBA represents about 750 member businesses and 40,000 jobs serving the residential construction industry in Pima and Cochise counties.
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