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How to Avoid Foreclosure

Written by: Michael Anthony Cataldo

Reputation Level 10

Posted about 3 years ago. 1 helpful vote, 0 comments

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Check into non bankruptcy emerrgency assistance programs

All states and the federal government offer various emergency assistance programs. Thee often are outline or attached to a foreclosure complaint or notice of foreclosure. Apply if eligible

Save Money

If possible save money during this time frame. The mortgage company will not be accepting partial payments during this process. Having funds will likely help you work out a loan modification or allow you to get off to a good start with a chapter 13 plan

Communicate with your mortgage company about options

Don't ignore letters from the mortgagee or leave them unopened. Contact them. Most mortgage companies have work out or loss mitigation departments and today more than ever they will entertain restructuring or modifying the loan to help you get through a difficult period. Often loan modifications allow them to still have a profitable loan while also making it affordable for you

Get a free consultation with an experienced attorney

Most attorneys offer free consultations. Even if offered a loan modification you should review it and compare it to Chapter 13 options. Further the attorney can review your loan papers and evaluate if there is any type of predatory lending or violation of federal consumer protection laws which can lead to rescission of mortgages ,damages or reduction of what is owed