No one is really prepared to open that envelope and read the statement "....we have begun the pre-foreclosure process...." The shock is universal, the flash of panic undeniable. As overwhelming as the situation feels you do not need to panic. You can get through this mess, you can survive. Do it right and you will be in a better financial position coming out than you were going in!
Is that possible? Can you have more money in six months than you have now? Yes, you can. You can take control of your destiny. You can get out from under the crushing force of your biggest monthly expense.
Step One: Get a guidebook. A quick read will give you a crash course in mortgages and the foreclosure process. This knowledge will be your armor. The lenders are heavily regulated. They are slow and plodding and you can stay ahead of them. Know where they will bend you and where they will break you and you can map out your survival strategy. You need to know the process and you need to know it now! Everyday you delay will impact your available options.
Step Two: Decide what you want. The lender has told you what they want. Plain and simple they want your money. And if they can't have your money they will take your house. Pick a strategy that will get you what you want and ride that horse.
Step Three: Act on your plan. Use the strategy you identified using your new found knowledge. If your guidebook was good, the strategy will be clear, easily customizable to your individual situation, and effective at solving the problem. And, unlike a real horse, it won't cost you an arm and a leg.
Where do I get a simple, readable guide to foreclosures and mortgages? Talk to a free counselor at HUD for suggestions. They have access tons of information. Even easier, make a quick trip to your local library. They should have a handful of options. My personal favorite is The Complete Guide: Secrets To Stopping Foreclosure. If your library doesn't have it, you can get it from foreclosurebarricade.com.
As you learn about the mortgage foreclosure process you will understand why you lender is moving on your loan. You will know what they must do to actually foreclose. You will even know the strategies you can use to help them change course and modify your loan agreement.
You will also been guided to evaluate your own individual situation. Using your knowledge you can honestly determine what outcome you would like to see. You can develop a strategy to get you out from under a dysfunctional loan agreement and into an affordable situation.
Effective communication with your lender is usually the first step toward achieving your goal. Most have in-house and federal loan modification options available, even to those that have been previously rejected.
Lenders are overwhelmed with foreclosure activities. There are daily headlines of lender understaffing and processing errors. Many lenders have slowed or even temporarily stopped foreclosure proceedings. Take advantage to use this extra time to solve your mortgage problems. Don't misunderstand "slowed" or "temporarily halted" to mean your impending foreclosure isn't going to happen. If the lender has a right to your home they will in no uncertain terms take it. But if you are one of the fortunate ones whose foreclosure has been temporarily halted open the lines of communication. Use your new knowledge to better re-apply for a new modification.
The initial panic you felt reading the doom and gloom of impending foreclosure is not the end for you. Gear up to fight for what is yours. Barricade your home from foreclosure. Learn the process. Find the best strategy to get you what you want. In six months you can have more money than you have today!