7 Tips for Saving Your Home from Foreclosure

With recent news that foreclosures continue to rise despite lender efforts, it's time to repost the 7 tips!

1. Understand your foreclosure deadlines. All this takes is one simple step: Open your mail. You’ll find out what your deadlines are, the amount of your arrears (the amount necessary to get your payments current), what fees you are being charged for the delinquent payments, and your total payoff amount.

2. Face your finances. What is your complete financial picture? You must understand this before you communicate with any lender or third party. Know your net income, expenses, savings, and liquid cash. All this factors into the options you will have to save your home or credit.

3. Communicate with your lending partner. Only after you have assessed your financial picture and learned your deadlines should you contact your lender. It may be difficult to get to the decision maker, so be persistent. Agree to a workout only if it corresponds with your financial picture – it is worse to agree to a plan that you cannot afford than to negotiate a plan that works for you.

4. Evaluate additional options. You have more choices than you realize when facing foreclosure. This is when the discussion of bankruptcy, selling your home on the market or to an investor, or refinance should come into play – you need to explore all possible alternatives at this time.

5. Reach out for help. Professional help can only enhance your foreclosure prevention game plan. Seek advice from certified housing counselors to help you review your options and learn about available assistance.

6. Communicate with family members. Understanding that foreclosure can be embarrassing and stressful, this is not the time to hide the problem from family members who are affected by the situation. The stress of keeping it to yourself will increase the likelihood of losing your home.

7. Protect yourself against scams. If individuals offering services or wanting to purchase your property approach you, document everything. Check their personal and business backgrounds with state consumer protection offices and the Better Business Bureau. Ensure that you review offers with professionals before committing, and watch out for “too good to be true” offers and those who try to rush you through the process.