Tuesday, November 3, 2009

When You Are Facing Foreclosure

Contrary to popular belief not everyone who is facing foreclosure is in the situation because of a liar’s loan or poor money management. Job loss, divorce and even unexpected medical issues can put otherwise responsible homeowners at risk of foreclosure. Even more common today, you will find homeowners whose home values have been negatively affected by a high number of foreclosures in their area and combined with rising fuel costs and increased job loss, holding onto their home just seems impossible. So what do you do when you are facing foreclosure?
Step one is to take a deep breath and call your lender. Let the crazy thoughts of walking away from your home fade to the last resort pile. Or at least before you make this your plan, take the time to re-evaluate your budget and determine if you can afford to keep it. Clear your mind and get a picture of how long your financial problems will last. You will need this information to negotiate with your lender anyway, so take some time to get a clear picture of your financial future in your head before you make any calls.
It can’t be stressed how important it is to talk to you lender about options first when you are facing foreclosure. Ignoring the mail and not answering calls is definitely not the best approach. Lender have been very willing to work with homeowners during these trying times, but the first step to making a change is to make yourself available.
There are still situations that can’t be remedied. It is at these times that you need to execute some serious damage control and do your best to protect your credit and your future. If your lender is unwilling to negotiate or you are unable to come up with a new payment that fits your budget, you are going to need to come up with alternative options for selling your home to cut your losses.
The best way to get out of your house and still have some cash in your pocket is to seek out a distressed property solution that will buy your house fast and for cash. This solution usually comes in the form of a network of real estate investors who purchase homes in any condition for cash. Although you generally won’t get full market value for the home you may be able to recover what you owe on the mortgage or close to it. The best part of dealing with real estate investors to sell your house is that the process is fast. Because there are no realtors, no commissions and far less paperwork, the process of closing the deal goes quickly and generally without incidence.
Don’t let foreclosure ruin your financial future. Know what to do when you are facing foreclosure and find the best solution for your situation.

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