When a homeowner receives the 90-day foreclosure notice from their lender, they often become confused and overwhelmed as to what they should do to save their home. In all the hassle and commotion, they commit certain mistakes that make their situation worse and the pending foreclosure inevitable. To help you handle the foreclosure process intelligently and rationally, here are a few common mistakes that homeowners make and should be avoided at all costs.
Avoiding Contact with the Lender
When you begin to miss mortgage payments, your lender may call you and send letters or emails demanding you to clear your dues. Many homeowners, knowing their inability to pay the mortgage, start to avoid contact with the lender and ignore their phone calls. However, this is a big mistake. If your circumstances have changed or any unexpected expense has rendered you unable to make payments, you should confront your lender and explain your situation to them. You may be surprised to learn that they will be willing to work out a solution with you instead of foreclosing your home.
Not Considering any Government Run Programs
The Federal Housing Administration (FHA) has initiated several programs that are designed to allow troubled homeowners to cope with their mortgage payments. The FHA Secure Refinancing program is specifically for people who are facing a foreclosure. It helps homeowners with an adjustable rate mortgage reset or interest-only loans and make mortgage payments affordable. You should consider getting guidance from a HUD-approved counseling agency to obtain a solution for your situation.
Falling Prey to Foreclosure Scams
As soon as you receive the foreclosure notice, you are likely to start getting calls from foreclosure prevention services or consultants who can help you save your home. However, these companies are scam artists and offer fraudulent schemes that do more harm than good. They provide you with ineffective ways in exchange for a hefty fee that, later on, gets you in hot waters with the lender. Whatever you do, avoid these foreclosure scams and work with an attorney or your lender to find a solution.
Not Maintaining your Property
When homeowners are facing difficult in making mortgage payments, they think that the foreclosure is inevitable. They stop maintaining their property and let it go into disrepair. Some of them even damage it intentionally out of anger and frustration. However, this is a huge mistake, as it makes your property less attractive to buyers when you are considering a short sale. Not only that, it also becomes difficult for the lender to sell it for a reasonable price, making you liable to pay the outstanding amount. It is best to make timely repairs and carry out maintenance to ensure your property is in presentable and sellable condition.
Not Seeking Legal Counsel
The most common reason people avoid getting legal help is that they consider it as an additional, impractical expense. But an attorney who has experience and knowledge of foreclosures can open many doors for you to stop foreclosure. They may work with your lender and negotiate new, more flexible terms for your mortgage loan, making it easier for you to make regular payments. Moreover, they may offer legal help in terms of pointing out mistakes the lender made in executing the foreclosure.
Consult with An Elgin Foreclosure Defense Attorney Today
For more information about foreclosure defense, you may contact the Jackson Abdalla Law Group today at (773) 550-3853. We represent clients in Kane County and the Greater Chicago area.