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Five Things You Should Avoid Doing When in Foreclosure

When your home is in foreclosure, you will do almost anything to try and keep from losing it. How do you know what is the best plan of action to take? How do you know if someone is trying to fraud you or take advantage of your situation? This article is going to explore five things a person should avoid doing if they are in foreclosure proceedings.

Five Things to Avoid Doing When in Foreclosure:

1) Don’t jump right into taking a short sale as a way to avoid foreclosure on your home. First, you should speak to a modification lawyer about helping with loan modification. Filing a short sale will affect your credit score in the same way a foreclosure will.

2) Do not sell your paid-off vehicle in an attempt to use the proceeds to get caught up on your mortgage. This is only a temporary fix, and what are you going to do when you need a vehicle to get to job interviews or to your new job? This is definitely something to avoid doing when in foreclosure.

3) Do not cash out your 401k or retirement accounts to pay the back mortgage. Again, this is only a temporary fix and you are now cutting into your security for your elderly years.

4) Never ignore the mortgage companies’ phone calls or written correspondence. If the lender sees that you have a proactive borrower, they will be more likely to work with you on the modification of loan.

5) Never sign your deed over to a person who claims to be a “foreclosure help specialist“.More than likely it is a scammer that is looking to take advantage of a person in a dire situation and will only end up stealing your home and all the equity that is available.

Filing Bankruptcy

The best thing to do is file a bankruptcy. That will put an end to all collection efforts and even save your home. Mortgage banks are in the business of collecting debt, they don’t want to take your home, they would rather work with the lender and do a modification of the loan. The foreclosure process is a last resort when all other attempts to modify the loan and start a repayment plan have failed.

Loan Modification

If you live in the State of New York, or the surrounding areas, and wish to file a loan modification, there are modification lawyers in Suffolk County that are very good at doing their jobs. Loan modification can stop the proceedings of foreclosure and allow a person to keep their home. Loans can be modified in several different ways, and by consulting with one of the modification lawyers in Suffolk County, you can have a better idea which one to apply for.
So, however you decide to handle the foreclosure issue, be it a short sale, bankruptcy, or loan modification, be sure to consult an attorney that is well known and knows real estate law. Because when it comes to your home, you cannot afford to make any hasty, uninformed decisions. If you are looking for a loan modification lawyer, contact us!