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Friday, February 20, 2009

8 Easy Steps To Save Your Home And Prevent California Foreclosure

By Kylon Trower

There are countless families that are stressed out due to the fact that they are facing a California foreclosure and it is very important for you to know how to handle the situation if you are forced to save your home. Below are a some sound guidelines to follow if you are dealing with a foreclosure in California.

1. Don't attempt to ignore the problem because you thinks it's too overwhelming. The more you get behind on your payments, the harder it will be to reinstate your loan and catch up which means you make it much more difficult to save your home.

2. Contact your lender as soon as you realize that you have a problem. You must understand that the banks don't want your house as California foreclosures are at record highs.. They may have some viable options to assist you in getting through these difficult financial times.

3. Open and respond to all mail from your lender if you intend to save your home. The first notices you receive will offer good information about California foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know exactly what your rights are as it pertains to your mortgage and foreclosure in California. Find all of your loan documents and read through them carefully so that you understand what the bank may do if you can't make your payments. Learn about the California foreclosure laws and time lines. Contact your State Government Housing Office (because every state is different).

5. Understand the California foreclosure prevention options. Valuable information about California foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure.

6. Watch your spending. Other than your health care needs, taking action to save your home should be priority number one. Go over your family budget to see where you can tighten your belt in order to make your mortgage payment on time. Look closely at other expenses like cable television, gym memberships and other luxury expenses that you can cut immediately. Delay payments on "unsecured" debt and credit cards until your mortgage payment has been made.

7. Make use of your assets to save your home. Do you have any valuable assets like a second car, additional furniture, a life insurance policy that you can sell quickly? Perhaps a garage sale or a second job could help you bring in extra money to cover your mortgage expense? Even if these efforts don't raise all the money you need to make your mortgage payment, they demonstrate to your lender that you are willing to make every effort to save your home from foreclosure.

8. Don't lose your house to California foreclosure recovery scams! If any firm claims they can save your home and stop a California foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted California foreclosure professional, or real estate attorney.

Take heed to the advice above and use your common sense when making decisions about preventing a California foreclosure and attempting to save your home.

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