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While most headlines right now are focused on the soaring real estate prices that are reducing affordability across the US, there is another parallel story unfolding. This is the age-old story of home foreclosures. According to recent estimates, the number of people receiving a foreclosure notice in the US has risen sharply.
As stimulus money runs out and the job market continues to falter, it seems we could be about to see a tsunami of foreclosures, as more and more families are unable to keep up their mortgage payments. If you have been slapped with a foreclosure eviction notice, it is not the end of the world.
You might be able to keep your home, or at least avoid an ugly and expensive ordeal. If you have been hit with a foreclosure notice of default, don’t panic. Read on the find out exactly what you can do.
1. Call Your Bank Immediately
If you have been hit with a foreclosure auction notice, call your bank or your mortgage lending company immediately. This might feel difficult or embarrassing, but you absolutely need to do this in order to see if alternative arrangements can be made.
Remember, your bank does not want to sell your home unless they absolutely have to. They would rather see you in your home and continuing to make payments. Call them to explain your situation and see what can be done.
2. Prepare a Foreclosure Notice Hardship Letter
After your initial contact with the bank, your next step after receiving a notice of foreclosure letter is to write a letter of your own. This is called a Hardship Letter and is something you will need to send to your bank, lender, or Government agency (if applicable, see below).
This explains why you have failed to make your payment and emphasizes that you are in an exceptional situation. This document will be assessed to see if you are eligible for lower mortgage payments or a mortgage holiday.
3. Consult a Home Liquidation Expert
Your next step should be to consult an expert third party. Home liquidation experts will help you walk through the foreclosure process and will act as a last resort if you just want to sell your home for a decent price without having to go through a bank auction. Read this article to learn more about how these third parties can help you recover from a notice of sale foreclosure.
4. Reach Out for Government Assistance
The Federal Government has a number of policies in place designed to ease the burden of foreclosure and force lenders to cooperate with you. The Home Affordable Modification Act obliges lenders to negotiate with delinquent borrowers to discuss more affordable payment plans.
The Home Affordable Foreclosure Alternatives program incentivizes lenders to seek other forms of payment as an alternative to repossessing a home. Always do your research to see what your options are.
More Tips for Sustainable Real Estate Choices
Understanding your options in the event of a foreclosure notice is crucial. For more tips to help you keep your home and build your assets, we have got you covered. Check out our dedicated Real Estate pages to learn more.
