How Can a Foreclosure be Avoided?
First of all, if you are struggling to make your mortgage payments, call or write to your lender's Loss Mitigation Department right away. Explain your situation and be prepared to provide them with financial information to back it up - like your monthly income and expenses. Just follow these 3 simple rules:
- Contact your lender as soon as you know your payment will be late.
- Never ignore the lender's letters or phone calls.
- Don't assume that your situation is hopeless.
Your lender does not really want to foreclose. So stay in touch with them, return ALL phone calls, and make whatever partial payments you agreed upon.