6 Tips to Avoid Foreclosure

Whether or not you are behind on your mortgage, these tips will help you to avoid foreclosure.

1. Make a monthly budget

If your income is not enough to cover your budget, make adjustments and decide what is most important and what you can live without. Can you cancel your monthly video subscription?  You can also see where you can save money on the essentials such as making sure to turn off lights when they aren’t needed, turning off the water when it’s not being used, and cooking at home rather than going out to eat.

2. If you miss a payment, talk to your lender

Don’t wait until you’re two or more payments behind. Contact the lender immediately to avoid the possibility of foreclosure. Your lender’s phone number is on your bill. Tell the lender why you can’t make the payment as ask for help to avoid foreclosure. 

3. Get help early

Applying for assistance will give you time to figure out your next step, whether that is forbearance, modification, or another type of assistance. Your lender can’t give you a first notice for filing for foreclosure until you are more than 120 days behind on your payments. When you submit a complete application for mortgage help early enough, your lender can’t start foreclosure while you’re being evaluated or if you’re following through on the requirements of a loan modification. Getting help early could determine if you go into foreclosure or not. Give yourself this extra time to get the help you need. Learn more from Consumer Finance Protection Bureau here.

4. Open your mail

Doing this will give you the information you need regarding your loan. It will also have important legal notices that you need to be aware of. Overlooking the mail from your lender will not prevent foreclosure. 

5. Watch out for scams

Foreclosure prevention is free. If a company is asking you to pay them upfront, sign over the title to your home, stop paying your mortgage, or they guarantee you won’t lose your home or will get your mortgage terms changed, the company is trying to take your money, not help you stay out of foreclosure. 

6. Contact CNE or another HUD-approved counseling agency

We have foreclosure prevention specialists who will help you with the process of dealing with the possibility of foreclosure. Our phone number is 423-756-6201 or email us at info@cneinc.org

For more information on how to keep your home, please read more here.