People hesitate to bring up the “F” word. No, we’re not discussing profanity. We’re talking about foreclosure.
Foreclosure is a firghtening prospect, as it means that you and your family could soon find themselves homeless if you don’t make or catch up on your mortgage payments.
But sometimes, even the loss of the home is not all that you face. You could wind up with a deficiency judgment against you if the home appraises for less than what is owed on the mortgage.
But there are some things to do to avoid foreclosure, including:
- Contacting your lender immediately. Foreclosures don’t happen without warning or overnight. Don’t ignore repeated calls, letters and warnings from your lender. They want to help you resolve your problem.
- Sell off assets. Life insurance policies, expensive cars and jewelry all can be liquidated to reinstate your mortgage and save your home.
- Work another job. Many cash-flow problems can be alleviated with a second (or even third income stream). Perhaps a stay-at-home spouse could start babysitting or working from home keeping the books of a business. Get creative and you can probably come up with several ways to earn extra money, e.g., mystery shopping.
- File for bankruptcy. This stops the foreclosure clock in its tracks and buys you some additional time to get your financial situation under control. While this option should not be your first choice, if the situation is particularly dire, it may be the most viable.
It’s also vital to know your rights during foreclosure. A Monmouth County bankruptcy law attorney can provide advice and counsel during these unfortunate circumstances.