How to Get Foreclosure Help
If you have received a foreclosure notice from your bank or their attorney, you probably are having number of strong emotions such as fear and anger. Some people become quite distressed and fall into severe depression. Don’t let your emotions get the best of you in this serious situation. Even though it is quite difficult, you need to take action quickly. The faster you act as well as the steps you take may be able to avoid foreclosure or at least avoid piling more stress upon yourself.
First of all, put your emotion aside and channel your energy into finding a solution to your problem. Dwelling on the emotion of the situation only makes it worse while taking action, even if it means finding and moving to a new location, can help you recover mentally from the blow. When you begin to think clearly and take action, you’ll feel much better. Let’s take a look at some of the basic steps you can take and who you can turn to who can assist you in this situation.
If you are having financial problems as serious as foreclosure, my first recommendation is to contact members of your extended family. Of course, this depends on how strong your family bonds are and how good your family relationships are. I understand that not everyone is blessed with a good family situation. But, if your relationship is good, don’t ignore the help you can get from them. Sometimes, they may be able to help you through a financial rough spot if they’re fully aware of the problem. But even if they can’t help financially, they can often help you deal with the problem at an emotional level. Sometimes close friends can substitute for family relationships but I always counsel caution when money is involved although emotional support is fine.
When one is dealing with foreclosure, one of the first places, outside of family and friends, to contact is with the Department of Housing and Urban Development (aka HUD). They can put you in touch with a HUD approved housing counselor. This counselor can give you some ideas you can use to avoid foreclosure. Even if your foreclosure cannot be stopped, these counselors have resources at their disposal that can help you find a new place to live.
You may also find it useful to contact an attorney who specializes in handling foreclosure cases. While bankruptcy is the most common way lawyers stop foreclosure they can have other tools at their disposal, such as determining if your lender has followed legal procedures correctly. Another thing that a good foreclosure attorney can do is provide an emotional buffer between you and the mortgage lender and their representatives. Since your lawyer doesn’t have an emotional stake in the dispute, they can shield you from the troubling emotions that can surround a foreclosure and speaking to lender on the phone or in person about it. The downside of hiring an attorney is the cost. If you’re having financial trouble, then one may not be affordable to you.
Real estate agents who specialize in pre-foreclosure sales and short sales may also be a helpful resource. Having an agent who knows the laws in your state and how to work with lenders on these sales can be a great asset. You do need to be a little wary about who you work with though. Some agents may be lazy in working with you for various reasons and others may push you toward questionable deals. I always recommend checking out the reputation of any real estate agent you work with but especially in the difficult situation.
In some cases, working with your mortgage lender themselves is an option. If your loan is through a smaller, local, bank or loan organization, this is a practical thing to do. They have an incentive to avoid foreclosing on properties in the mortgage portfolio and may be quite willing to work with you. If this is where your home loan is, by all means, contact them as soon as you can. However, if your loan is from a large national banks or if your loan has been sold on the secondary investment market it can be difficult or even impossible to contact anyone with any real decision making authority regarding your loan. At best, you’ll be put in touch with a low level cubical dweller who’s only interest is in following a pre-defined collection script and have no interest in hearing the details of your situation. Don’t put yourself through that kind of useless stress.
I hope this article has provided you with some ideas on who to consult when you’re dealing with a foreclosure.