| Has your financial situation turned topsy- turvy | | | | This is termed as ‘loss mitigation’. It’s |
| due to one of the following reasons? | | | | important to be updated with your loan contract. |
| 1) Divorce | | | | Learn what is written in it. Contact the |
| 2) Loss of Job | | | | Government office of your state handling such |
| 3) Unexpected Medical Expenses | | | | issues to know the time frame in your particular |
| 4) Increase in Tax | | | | state as it varies. There are bodies appointed by |
| Is paying your monthly bills becoming a Herculean | | | | the government that offers housing counselors at |
| task? | | | | free or very low cost. They help you understand |
| Then you should first know how gradually this | | | | the laws and work sincerely on how avoid |
| process of foreclosure takes place before moving | | | | foreclosure. |
| on to the tips to protection foreclosure: | | | | Your assets can come handy in this situation. |
| Step 1: When the first month payment is missed, | | | | Jewels, cars, lands, insurance policies, bonds etc |
| the lender contacts you through a letter or a | | | | can be converted into cash, so that you can |
| telephone call. A house counselor can help in this | | | | avoid losing your most important property. |
| situation. | | | | You could also talk to your lender about adding a |
| Step 2: Second month, you receive continuous | | | | back up amount to your existing loan and adding |
| calls from the lender. Try not to avoid the calls, | | | | the missed out payments to that. If your |
| instead explain your situation to the lender. The | | | | contract allows that, then it could be a good |
| house counselor might still be able to help. | | | | solution. |
| Step 3: After the third month, you receive a | | | | You could also spread the entire amount of |
| demand letter stating how much balance you will | | | | missed payment to the whole loan term by |
| have to pay in a specified period. It is better to | | | | dividing it equally and promise to pay regularly |
| somehow manage and pay the amount within | | | | there after. For this you need to be sure that |
| that period. Else it means that you’re nearing | | | | you would be able to get sufficient income. |
| the danger zone where the foreclosure steps | | | | Be on guard for foreclosure scams. Be sure that |
| would start very soon. | | | | your property is not being lost for no reason. If |
| Avoiding foreclosure is not an impossible scenario. | | | | you have any doubts regarding this possibility, do |
| It can be achieved from little effort on your side. | | | | not be hesitant to immediately consult a legal |
| First of all, learn to respond to all calls and letters | | | | authority to clarify them. |
| of the lender. Facing the problem can solve half | | | | It is always better to prioritize and plan your |
| your worries than running away from it. There | | | | spending so that such mishaps do not occur. |
| are many websites that help in keeping you | | | | However if they do occur, take the right steps |
| updated about your rights as a borrower. Know | | | | and solve the problem with the confidence that |
| every one of them to protect your property. | | | | this too shall pass. |