Six Steps to Take When you are Faced with Foreclosure
A foreclosure notice goes out from your lender when you stop making your mortgage payments. Some lenders will give you a few months before sending that notice, while others will send it through the mail if you are even a few days behind. As soon as your lender contacts you, you need to take a few simple steps.
Contact the Lender
Contacting your lender is always the first step you should take. Make sure that the notice is valid, as mistakes can happen. You can always talk to your lender about what you can do to put off a foreclosure. The lender might give you more time to bring your account up to date or suggest other options.
Attempt a Payment Plan
A payment plan is one way that you can get more time in your home. Some banks will let you bring your payments up to date by making a slightly larger payment each month until you pay off the total amount past due on the account.
Go Through Your Belongings
If you cannot put off the foreclosure, you need to start going through your belongings. Use garbage bags and cardboard boxes placed in each room. Determine which items you can donate or which ones you can sell for extra money.
Put Things in Storage
After going through your home, search for nearby storage units. Use bubble wrap, newspaper and packing peanuts to store delicate or breakable items in boxes, and label the outside of each box with a detailed list of its contents. Start moving boxes into your storage units several weeks before the foreclosure goes to court. You can store anything that you don’t need until you move. This will make your move much easier when the time comes, especially if you are stuck in a small apartment or a relative’s house while you are finding affordable housing.
Host a Yard Sale
Get some extra money for your move with a yard sale. Some people make a few thousand dollars over the course of a weekend, but any money that you make will help you pay for a new rental home, apartment or even a hotel room until you get back on your feet again.
Find a New Residence
Finding a new residence is the last step you should take after receiving a foreclosure notice. If you cannot bring your mortgage up to date, the court will give you a certain amount of time to leave your home. The sooner you find a place to move, the faster you can work on getting your life back on track. Finding a home and following the other steps will show you what to do after a notice arrives in your mailbox.
Being forced to move from a family home is never easy. Things are going to be hard and you may find yourself emotional thinking about the memories you have built in your home, but by following these tips, you can make the transition as smooth as possible so you can start re-building your life and your future.
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Category: Foreclosure
