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Colorado Real Estate | Three Ways to Stop Foreclosure on your Home
With record numbers of foreclosures across the country many home owners are finding themselves in the horrible position of losing their homes due to lack of payment on their mortgage for a variety of reasons. One of the most common reasons is being placed in the wrong type of loan like an ARM (Adjustable Rate Mortgage) and finding when interest rates changed so did their monthly mortgage payment.
They either took out a mortgage that was too big, got mixed up with the wrong type of loan, or are simply out of money due to a job loss through layoff’s or other unfortunate reasons. Once a homeowner misses as little as one payment their loan company often turns up the heat on receiving their payments and they quickly get sucked into the foreclosure process. Although this is a scary experience if you are faced with it, there are some ways that you can get around it if you try hard enough. This is not to say that your lender is going to let you slide time and time again, but there are some things that you can do in order to stop foreclosure. As a real estate professional one of the most disconcerting things to see is have one of our clients buy their dream home only to see their investment possibly lost due to their inability to make their mortgage payments.
At Legacy Real Estate Brokers Inc. we have compiled a list of suggestions listed below which can help you rescue your important investment and save you from the brink of foreclosing on your property. These are not guaranteed to work for you and your situation, but they are at least worth trying out before your loan officer or bank representative comes knocking.
1. One of the best ways to stop foreclosure is to make sure that you are never faced with this situation. In other words, make sure that you have all of your finances in order before you move forward with buying a home. The main reason that people get stuck with a foreclosure process is that they did not research their purchase. In essence be a smart well-prepared homebuyer and make sure you have at least several months of mortgage payments available in case of emergency. Have assets likes stocks, bonds or mutual funds earmarked for liquidation if you need to access extra finances in case you lose your job. Speak with you accountant and or investment advisor to have funds available for a rainy day.
2. You may be able to stop foreclosure by getting in contact with your lender as soon as your first missed payment pops up. As you can imagine, lenders do not look into foreclosure just because you missed one payment. But with that being said, they will want their money, and if you ignore them foreclosure is on the way. It is important that you communicate with your lender if you are worried about foreclosure. This way, they can help to work out a deal with you. Like any business transaction you want to be up front and honest with your lender and understand from the beginning what your options are if you are faced with a foreclosure situation.
3. If foreclosure is imminent, you may want to speak with your realtor and explore the options of selling your home to recover your initial investment and protect your financial future from credit or liability damages by attempting to sell your home before things get too bad. Selling during the pre- foreclosure process is a great idea for some people. This allows you to get some money out of your home, even if you only get enough to pay off a small portion of your loan. Remember, if a foreclosure takes place you are not going to have the chance to take advantage of these benefits.
If you fear you may lose your job or find you are looking at financial troubles in the near future follow these tips and get in touch with your realtor and loan officer as soon as possible and you may be able to avoid the unfortunate experience of losing your most priced possession to the foreclosure process.
Tom Reed and Bill Brown are local authors and real estate experts of Legacy Real Estate Brokers Inc. in Denver Colorado. You can visit there website at www.discovercoloradorealestate.com
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About Local Author
Denver Colorado real estate experts Legacy Real Estate Brokerage, Inc. is a full service Colorado real estate firm specializing in Colorado real estate for sale including purchasing a Colorado custom home. They have outstanding brokers who are highly familiar with the neighborhoods, communities and lifestyle options available throughout the Colorado Real Estate market.
Hi, I found your article on Digg. Good point about doing your best to prevent foreclosure before it becomes a problem. If home buyers can save up for a down payment and show stable income to qualify for a loan, then there really is no excuse not to establish an emergency fund, as well. Whether that’s in stocks, bonds, savings, or whatever else is almost irrelevant, as long as some sort of liquid account is available for use during a hardship.
Colorado Mortgage Lenders…
Interesting - because that is the same thing I found out last Thursday….
Eric…
The most thorough and informative information I have found. Enjoyed it immensely….
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