This is an article for avoiding foreclosure. Information in this article covers a broad range of scenarios that relate to general topics about foreclosure rates.
- If you are experiencing financial pressure regarding your mortgage payment and are unable to make the payments:
- Communicate your hardship to your lender without delay.
- File Chapter 13 Bankruptcy that will force your lender to halt the foreclosure process and pursue a payment option with you. This is sometimes called “debt restructuring”. This may also absolve you from your unsecured debt (I am not licensed to give financial advise BTW).
- File Chapter 7 Bankruptcy – this is a total liquidation of any of your assests. This will not stop foreclosure but my allow some time to live while you are saving for an apartment or making other plans.
- Try to sell the property before it becomes a stain on your financial record; Selling for cash can be a good option.
- Apply for a loan modification. The government now has a consumer protection channel to apply for a loan modification: https://www.consumerfinance.gov/mortgagehelp/
OTHER REASONS FOR FORECLOSURE
Maintenance of your home is becoming overwhelming
- If you do not maintain your home or are not able to afford the upkeep apathy could set in. Some people let their house go into foreclosure because they don’t maintain the aesthetics of the property.
You have inherited a property that has a mortgage
- You might be willed a property that has a mortgage that you aren’t interested in. If you do not legally take possession then you will not be liable for the debt. Consider what debts are owed on any inherited property.
HERE IS SOME OTHER INTERESTING INFORMATION REGARDING FORECLOSURE:
Women go into foreclosure less than men.
Of Americans born between 1957 and 1964, Married, College educated whites had the least foreclosures between the years of 1994 to 2005 according to the US Labor Department.
Interesting about the demographics of home ownership, foreclosure as well as some delinquency statistics from the Bureau of Labor.
The larger your down payment for a house the less likely your are to slip into foreclosure because of the amount of “skin in the game” you have. Also, many mortgage companies will not require mortgage insurance on a property with a 20% down payment. Their risk is lending only 80% of the appraised value.
To review, there are many options to avoid foreclosure and the worst thing that you can do is to do nothing.