How to Avoid A Foreclosure Letter

The word "foreclosure" is scary for many homeowners in America. The loss of a loved one or a steady job can cause a homeowner to become delinquent on his payments, which can lead to the dreaded foreclosure letter. According to RealtyTrac, one in every 411 housing units in America were facing foreclosure in June 2010. It is possible to regain control of a mortgage to ensure that the foreclosure letter is avoided.

Instructions

1

Contact the lender immediately once one payment has been missed. The lender will be more willing to help a borrower that did not avoid the problem. The help may come in the form of a renegotiation of the length of the loan to lower monthly payments or a sensible payment plan to help repay the past mortgage balance.

2

Read your mortgage papers and if necessary, contact your State Government Housing office to help you better understand the terms of the loan. Foreclosure laws vary by state, and it is important to know the laws that deal with your particular state.

3

Cut down on your spending. Stop going out to eat, cancel the cable or get rid of a gym membership. Place all of this added income into paying the mortgage.

4

Contact the U.S. Department of Housing and Urban Development, or HUD, to inquire if you qualify for any government assistance programs. HUD may be able to assist you in speaking to the lender or find ways to help manage your finances. A local HUD certified housing counselor near you can be located by calling (800)-569-4287.

5

Sell any assets and place the proceeds towards repaying the mortgage. A second car, jewelry or any other items of value can be auctioned or sold to a private party to help pay back the overdue balance of the loan.

6

Sell the home. To avoid having a foreclosure on a credit report, some owners will sell their home to avoid risking their financial future. Contact a local real estate agent to have your home appraised and placed on the market.

7

File for bankruptcy. When bankruptcy proceedings have begun, a foreclosure is immediately halted, which is known as an "automatic stay." The foreclosure is permanently halted until the bankruptcy has ended, or until a "lifting of the stay" is legally granted.