Best Ways to Avoid Foreclosure

You are not alone at all if you start feeling overwhelmed, stressed and flat out just feel like giving up when it comes to worrying about making your house payments.

In the midst of all the chaos and confusion it is very important to act fast to find solutions to the problem.



Address the Situation

You don’t have to go through this alone. Keep in mind, the sooner you act, the more opportunities you will have to getting yourself out of the hole.

No matter how annoying and time consuming it may be, always answer every phone call from your lender and open up every piece of mail that comes your way. It is also very important that you keep organized records of every conversation and contact you have with the lender and crowdfunding investors.

Find the mortgage documents you signed when you took out your loan. Keep those handy as you may discover more options.


Prioritize Your Spending

According to no matter what route you may try and take to fixing your foreclosure situation, it’s a good idea to know how much money you have coming in and out every single week to cover your monthly payments. At the very least, ask for receipts every time you buy something, and file those receipts in a filing cabinet.  Then at the end of the day write down everything you spent.

Figure out which bills are the most important and make sure those are taken care of first. Everybody is different but most people prioritize these first:

–        Mortgage payment

–        Groceries

–        Utility bills

–        Gas for automobile

–        Insurance payments

–        Car payments

If you don’t have a strong understanding of your budget, then you should take advantage of this free budget analysis through Union Plus Credit Counseling. You’ll get a no-cost analysis and 30% off any management plan fees if a DMP is appropriate for you. Call today at 1-877-833-1745.


Get Familiar With Your Rights

If you have any questions your states foreclosure laws should be able to answer them. Here is some of the things it should answer: How long is the foreclosure process? In states with Judicial foreclosure proceedings, the lender must go to the court before it can foreclose, and that process usually takes a lot longer than those states who have a Non-Judicial foreclosure process because these states can sell the property through an auction to get their money back.

If you are having trouble locating your states foreclosure laws then you can always go to Since foreclosure is nothing to take lightly you should always consult with an attorney before you do anything. Working America members get a free thirty minute consultation with an attorney and discounted attorney fee’s through Union Plus Legal Service.


Speak With a Housing Counselor

A HUD-certified housing counselor will assist in pointing out what your options are if your mortgage loan is currently unaffordable. You can find housing counselors at the Homeownership Preservation Foundation at 877-304-9676. They can talk to you about your available options which may include:


Refinancing Your Current Loan: You may get in touch with a credit union for mortgage refinancing solutions to determine if you could get a new loan to pay off your current loan. This could get you out of a risky adjustable-rate loan (ARM) into a fixed rate which you can be locked into forever without ever having to worry about your payments going up. Below are two quick places you can check to see if you would qualify for a refinance.

  1. Speak with your current mortgage lender
  2. Call Union Plus Mortgage and Real Estate at 1-800-416-5786.

Modify your current loan. A loan modification is where your lender will temporarily or permanently adjust the terms of your loan. Your interest could be fixed for a small amount of time or permanently. Some banks will help you modify your loan directly and others will make you go through the federal Home Affordable Modification Program (HAMP).


Short Sale: A short sale is where the lender will let you sell your property for less than what is owed on it. Even though you are selling the house the lender is getting less than what is owed on the house so it is important to hire a real estate professional from a real estate law firm who specializes in short sale negotiations.


Deed In Lieu of Foreclosure: If you cannot find a buyer for you home and your lender will not allow you to pursue a short sale then you may want to ask your lender if they will accept a deed in lieu of foreclosure. In this case you are essentially handing your property back over to the bank. The bonus here is that you may save the lender and yourself a lot of money in foreclosure costs, headaches and hassles.



Watch Out For Scams

According to the Federal Trade Commission scams promising to help consumers save their properties are on the rise. Here are some tips to help you identify one of these scams.

–        Upfront fees. You should not have to pay any sort of fee unless it is to your lender or an attorney that you hire to represent you. Don’t forget, guidance from a HUD-approved housing counselor is free.

–        You are instructed to make your mortgage payments to a company other than your mortgage lender.

–        You are pressured to sign papers immediately, or to sign blank pages or documents that you don’t fully understand. You should always hire a lawyer to look over any documents before you sign anything.