What to do if you are facing foreclosure on your home

Facing foreclosure can be an incredibly stressful and overwhelming experience.

If you have found yourself in any of the following situations, you may be at risk:

• You are about to miss a mortgage payment because you don’t have the funds to pay.

• You have missed one or two mortgage payments.

• You have received a notice or demand letter from your mortgage lender.

• You have been served a Petition for Foreclosure.

If any of those apply to you, it is a serious situation and you may be on your way to foreclosure. However, you do have options and the sooner you take action, the better your chances of finding a solution.

Why ignoring the situation is the worst thing you can do

It may be tempting to ignore phone calls from your lender or avoid opening the demand letter they’ve sent, but this approach will only make matters worse. Here are some potential consequences of inaction:

• You won’t have any say in the court proceedings and they will move forward without you.

• If your home is sold, you will receive little, if any, notice that you must vacate the property.

• You may have significantly less time to stay in your home than if you had appeared in court and explored alternative solutions.

How a mortgage broker can help

One of the best steps you can take when facing foreclosure is to speak with a mortgage broker as soon as possible. A mortgage broker has the expertise and industry connections to help you explore solutions that might not be immediately obvious. Here’s how they can assist:

1. Refinancing to lower your monthly payments

If your financial difficulty is temporary, refinancing your mortgage might be a viable option. A mortgage broker can help you find lenders who are willing to offer a lower interest rate or extend the amortization period, reducing your monthly payments to a more manageable level. This could help you avoid default and keep your home.

2. Securing a new mortgage with a different lender

If your current lender is unwilling to negotiate or offer a feasible solution, a mortgage broker can explore alternative lenders who may be willing to provide you with a new mortgage to pay off the existing one. This can be particularly helpful if your credit is still in decent shape and your home has equity.

3. Assessing the viability of selling your home

If keeping your home isn’t a realistic option, a mortgage broker can help you determine whether selling the property yourself is a better financial decision. If your home has enough equity, selling on your own terms may allow you to pay off the mortgage and avoid the negative financial consequences of foreclosure. This could also preserve your credit rating and make future homeownership possible.

4. Advising on legal and court proceedings

In some cases, going to court may be the best option to delay foreclosure and explore further solutions. While a mortgage broker is not a lawyer, they can work alongside legal professionals to ensure you have all the financial information you need to make informed decisions about your case.

Act early to prevent escalation

If you fall behind on your mortgage, interest and legal costs can accumulate quickly, making it even harder to catch up. The earlier you seek assistance, the more options you’ll have. A mortgage broker can guide you through this process, helping you navigate your financial challenges and find a solution that works best for you.

If you’re struggling with your mortgage, don’t wait—reach out today to explore your options and regain control of your financial future.

You can reach me at [email protected] or set a time for a chat here on my calendar calendly.com/april-dunn

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.