The last thing any homeowner wants is to think about foreclosure which means losing your family home. When you sign the loan contract there is an agreement that in case you cannot repay the loan on agreed terms, the lender has a right to foreclose to attain the ownership of the house.
If you do not pay your monthly mortgage payments properly you are technically defaulting on your loan. In such a case your lender may send you a notice indicating that he is starting with the proceedings of foreclosure. You will not benefit anything by ignoring the problem; the more delay you make, the more likely you will lose your house.
The best time to act against a fear of foreclosure is before you even miss your first payment. If your credit position is sinking call your lender while your head is still above water. There is no quick take-away advice for you; the rescue will take its time.
Repair steps may involve borrowing from friends or family for short term, extending the loan term by refinancing, getting a second job or finding a job with higher pay, following your budget plan strictly and saving more, prioritizing your spending and eliminating not-so-necessary expenses, drawing down on your superannuation fund etc.
A family member may get an extra job to bring in additional income. You must call your lender and discuss the possibilities of accepting the total amount owed in a lump sum by a specific date; or allowing you to reduce payments for a short period of time; or offering you a new suitable repayment plan.
Know your mortgage rights clearly, find in your loan documents what your lender may do if you cannot duly make your payments. Learn about the foreclosure laws and timeframes in your state as every state is different in this regard.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
Wednesday, March 4, 2009
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