What to do if you are behind on your mortgage:
– Loan Modification: reduce the APR or the monthly amount due.
– Debt Consolidation: get a new, lower interest loan to pay off the old loan.
– Debt Settlement: reduce the amount owed via negotiating.
What is foreclosure?
A foreclosure if a lawsuit filed by a mortgage company when a borrower has not made payments. Through the foreclosure, the mortgage company asks the Court to sell the property so the mortgage company can recover its money.
What to do if I am served with papers of Foreclosure?
-Read the Summons & Complaint
-Hire an experienced attorney
-Write an answer to Complaint
-Have your lawyer file your answer with the Clerk of Court (within 20 days)
What is a foreclosure sale?
A foreclosure sale is the legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the property.
What if I cannot afford to keep my house?
-Modify the loan
-Get a Settlement
-File for Bankruptcy protection
What is next?
-Always make payments on time
-Restore your credit
Credit restoration is not extremely difficult to do- but it does take time. If you end up filing for bankruptcy, you will have to start over, with bad credit history. First, always pay bills on time to avoid bad credit marks. Second, get a credit card or a CD and only spend what you have, making sure to not go over 20% allotted credit each month. Third, make sure to open a new account every so often and keep up with all payments. The more active accounts (that are up to date) you have, the higher your credit score will be. Lastly, change your lifestyle to a more modest one and slowly add in new rewards and activities over time.