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Tips to Save Your Home

Every year, millions of Americans stress over coming up with the money to pay their mortgage. There are many unforeseen scenarios that can lead to a mortgage meltdown, and leave you face to face with foreclosure.

Foreclosure can be a long, complicated, and straining procedure. It starts with just one missed payment and can even begin with one late payment. Many people who miss or make a late payment try to play catch up until they can't keep up anymore.

There is a pretty general timeline that accompanies a foreclosure. Up to 15 days late, all you are doing is accumulating more interest. Many mortgages will charge you a late fee after the 15th day. This is also when they begin to try and contact you to find out what the problem may be and to try and get a payment from you.

After 30 days your mortgage company will send you a “Notice of Default” and continue to try and contact you to setup payment arrangements. This is the first step for them in the foreclosure process.

Once 90 days is reached then the mortgage company will hire an attorney and begin the legal process of foreclosure. Each state and circumstance will take a different amount of time. You will be charged any fees that are assessed through filing a legal complaint. After a determined amount of time after the default the lender will post a “notice of sale” that includes the sale date. You are still able to try and make payments to catch you back up, but more than likely you will need to come up with a significant amount of money in order to save the house.

If you are falling behind or have had some unforeseen problems it is important to contact your mortgage company right away. In some cases you many not be able to contact them due to the circumstances; like if you were in the hospital or had to travel to attend to family. If the mortgage company is trying to contact you, make sure that you answer or return their calls. It can be difficult to try and explain your situation to them and in some cases you may have to speak to someone who is being aggressive. In most cases however, you will find that you can talk with a representative that will assist you in making your payments to avoid foreclosure.

Your mortgage company isn't after your house, they want you to keep making payments. It costs them a lot of money to foreclose on a house. It is in their best interest to help you save your home. Being late on your payment or missing a payment can do serious damage to your credit score, so it is important that you try and resolve the problem right away. If you are fortunate enough to setup a payment plan, it is vital that you stick to that plan. Chances are, if you miss another payment help is going to be a lot harder to find.

There are a few options that you have to avoid foreclosure. These are only options that you can work out with your mortgage company. Your mortgage company is not obliged to allow you any special paying terms, but it is important that you ask.

You may be able to take your missed payment and tack it onto the end of the loan. This will extend the timeframe of paying off your mortgage but will give you an opportunity to start over and not have to struggle with making a double payment.

You can setup a repayment schedule where you add extra to your monthly payment for so many months to catch you up. You can also make weekly or bi-weekly payments until you are completely caught up. This works well if you had a temporary interruption and you are able to continue with your previous payments.

Chances are that if you are late with one payment then next month's payment will be late as well because you now have less time in between due dates. What you don't want to do is continue to pay a month behind. You will be stuck in the vicious cycle of dealing with collectors and incurring fees and interest. It is important that you find a way to catch up your late payment.

Even though foreclosure is very stressful and damaging to your credit, it’s not the end of the world. If you can’t prevent it, you can certainly overcome it.

Resources:

Home Savers USA- 1-800-453-2194

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