Categories: Foreclosure Defense

What To Do if You Are in Foreclosure

Being in foreclosure can be a frightening situation. It creates stress on you and your family, but it is a manageable process. Housing Wire predicts that there will be more foreclosures in 2015 than in 2014 due to a number of economic factors. Here are some tips on what steps you should take first.

Create a Foreclosure File Now

Foreclosures generate significant paperwork. You need to have it gathered in one place for easy access. It can be a virtual folder, so long as you make sure you copy and scan all relevant documents and label them in such a way that makes them easy to find. All of the paperwork related to the process should be placed here. Never delay in opening letters and notices.

Get in Touch with a Professional

One of the first things Chicago Now recommends is that individuals in the process of foreclosure get professional assistance. A bankruptcy attorney or similar legal professional will understand the ins and outs far better than you and will likely be able to help you make better decisions. You can also speak with loan service financers and mortgage assistance programs like Ocwen Loan Servicing. Businesses like this can offer alternatives such as the deed in lieu of foreclosure. They can also assist with transactions like short sales. The important thing though is that with professionals to assist you, you will be more likely to wind up in the best situation possible.

You should also get in touch with counselors who can help you handle the stress and emotional hardship. It’s not uncommon for families to face significant strain during these times, but your marriage and your family are not doomed. But you must give them the proper attention and deal with the underlying issues.

Keep Everyone Informed

Foreclosures can take a year or more to complete, depending on how much paperwork your state requires and whether there are any other extenuating circumstances. If you lose your job or get your hours cut or have a death or illness in the family, all of this information needs to be reported. Those involved will not know if you don’t tell them.

Work on a Modified Budget

Your finances will obviously be strained when you are in the middle of a foreclosure. Working with any kind of budget may create additional panic attacks, but it is important that you know where your money is going and identify any holes where the money is draining away. Having a budget can help you accomplish this. It is also best to reduce whatever other financial strain may be pressing on you. Try to limit purchases on credit cards and avoid taking out any additional debts.

Going through a foreclosure is a challenging process, but you will make it. One of the first things you should do is gather up all your paperwork into a single place so that you know where it’s at. You should also consult with professionals like the attorneys at the Van Horn Law Group to make sure you are following the best course available. Whenever anything happens, you must make sure you inform everyone involved. You should also work on a modified budget to help keep further spending in check. With all these things, you will better manage your period of foreclosure.

Share
Published by
Chad Van Horn

Recent Posts

Simple Steps to Take When You’re Drowning in Debt: A Guide to Regaining Control

Debt can feel overwhelming, especially if it seems like you're drowning in bills, credit card…

1 week ago

Understanding Your Rights: Bankruptcy Laws and How to Deal with Debt Collection

When faced with overwhelming debt, it's essential to understand your legal rights and options. This…

2 weeks ago

How to Handle Aggressive Creditors: What You Need to Know to Protect Yourself

Dealing with aggressive creditors can feel like a never-ending source of stress, especially when they…

2 weeks ago

Recovering Emotionally and Financially After a Hurricane

Natural disasters like hurricanes don’t just destroy homes—they disrupt lives emotionally and financially. The road…

2 weeks ago

Navigating Contractor Bankruptcy: Challenges and Solutions

The construction industry is no stranger to financial turbulence, with contractors facing a growing threat…

2 months ago

Understanding the Sahm Rule: What It Means for Your Financial Security

What Is the Sahm Rule? Implications for Your Financial Stability | Van Horn Law Group

3 months ago