Tuesday, July 21, 2009

How to Avoid Foreclosure

The "Intelligence Report" published in past issue of Parade Magazine has some good points on how to be proactive if you think you might have a problem keeping your home.

Here they are:
1. Contact your lender as soon as you thing you might have a problem paying your mortgage.

2. Respond to all mail from your lender in a timely manner. Did you read The House of Sand and Fog? The female character lost her home because she never opened her mail.

3. Know your rights. Read your mortgage docs and learn the law in your area.

4. Prioritize your spending. If you're not that interested in keeping your home, put it on the market right away. If you decide you really want to keep it, put it at the top of your list, except for health care, and pay your mortgage even though you might have to not pay some of your other debts.

5. Avoid foreclosure-prevention companies and scams.

6. Get help from HUD. Call (800) 569-4287, the number they give, for information on avoiding foreclosure at www.fha.gov.
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