Most people dream about living in their homes for the rest of their lives. They typically do not consider ever foreclosing on the home. Unfortunately, many families do end up foreclosing and moving out of the homes they love.
If you believe you are facing foreclosure, these tips will help you maintain a stress-free environment as much as possible. Keep reading to see what you can do to make foreclosure as simple as possible.
1. Understand the Steps
The steps involved in foreclosure can be complicated, and you should learn how your state deals with foreclosure right away. Some states allow different types of foreclosure. You may also be given time to settle the issue with the bank, but this time limit may depend on your location and specific circumstances.
2. Consult With a Foreclosure Attorney
A foreclosure attorney provides you with pertinent information about the legal processes involved in going through foreclosure. If you are going through foreclosure, you need somebody in your corner to provide support in a legal and emotional sense.
3. Don’t Count on Your Bank
>Your bank has no obligation to ensure that you are making good decisions, and the bank certainly does not have your best interest at heart. For this reason, you need to build your own legal and emotional support system with knowledge of what works best for you.
4. Don’t Ignore a Problem
Ignoring a problem only worsens it. You cannot wish foreclosure away, so ignoring your bills or passing them off is not going to make the process any easier on you. In fact, failing to recognize your foreclosure could lead to an eviction or expensive litigation you weren’t expecting.
5. Remember Foreclosure May Not Wipe Out All Debt
Certain types of debt, like second mortgages and home equity loans, are not necessarily wiped out by foreclosure. Pay attention to the parameters of your foreclosure and speak with your attorney if you still have questions about foreclosure and the bills you are still forced to pay.
6. Reduce As Much Financial Stress as Possible
Foreclosure is a time of deep financial stress. For this reason, you should seek to eliminate as much other debt as possible. This will make the foreclosure have less of an impact on other aspects of your life, and you can make other housing arrangements as necessary. Getting back on track is the best course of action for your family. You may want to discuss the potential for a brighter future with a personal accountant.
7. Receive Personal Counseling as Necessary
One of the biggest problems people have when facing foreclosure is how to discuss problems with their family members or spouse. Hiding information from a spouse can lead to bigger problems, including expensive divorce. You may benefit from going to counseling to discuss your problems and ensure you can get on the right path when you are ready to move forward. Counseling will address the root of the problems.
8. Consider Bankruptcy
For many families, bankruptcy is the key to stopping a foreclosure in its tracks. This will prompt an automatic stay, which prevents your home from being taken until the lender files a motion for relief from the stay. You can consult with your foreclosure attorney to see if bankruptcy is the best option for you.
Frances H. Hollinger, Attorney at Law
offers legal services for individuals enduring financial stress and possible foreclosure. When you are unsure how to move forward with a foreclosure or bankruptcy, you can call our offices to schedule an appointment and learn more. Contact our offices today so we can discuss your situation.