What should I do to Avoid Real Estate Foreclosure?

What should I do to Avoid Real Estate Foreclosure?
By Nancy Woodward

If you are in this position, you have certainly experienced financial difficulties. You may or may not be behind in your mortgage payments. When you realize you are having problems, you should make a list of your creditors and begin contacting them.

The worst thing you can do is to ignore the situation and assume it will take care of itself. Lenders and creditors do not want to take legal action. They are willing to work with sincere people who are experiencing temporary problems.

So, you should:

1. Write a complete list of your creditors
2. Find documentation of your loans to obtain the following information -
a. Your loan number
b. Payment amount
c. Due date
3. Calculate your current living expenses.
4. Determine if you need to decrease expenses and/or payments of liabilities and for who long.
5. Call your lenders

While this sounds simple in theory, you may experience problems reaching persons in authority who can help you. You need to find the right department and person who are handling your account.

Create a spread sheet. Track all calls you make and the conversations you have with lenders. You should know the name of the person you are talking to and what their position is in the company. You need to follow up yourself.

Ask your mortgage lender for help and information. Perhaps they will allow you to refinance your mortgage, take out an equity loan, or pursue forbearance. Once you make it clear that you are willing to work with them, you will stand a better chance of avoiding foreclosure.