No matter where you live, the word foreclosure can be daunting because it means a person is facing significant financial problems.
You may be juggling a lot of thoughts in your head, such as what happens if the mortgage is not paid, how your bank will work with you, how long does it take to foreclose, and what are your steps to file for bankruptcy.
If these hectic thoughts are keeping you up at night, you should remember that you are not alone and should not feel shame. Here are ways of dealing with a foreclosure in today’s economic environment to help maintain your sanity.
This way, you will not need to jeopardize your health because of a debt that is beyond your control.
What Does Foreclosure Mean?
Foreclosure is an intense legal process where a lender tries to recover the money they are owed from a borrower if there is a loan involved.
The borrower may have stopped making timely repayments, which is why the lender is forcing the sale of their asset to use as collateral for the outstanding loan.
What Does Pre Foreclosure Mean?
Pre-foreclosure is the beginning phase of legal proceedings that can lead to a property being repossessed. If a borrower defaults on their mortgage, the lender will file a notice of default on their property.
This informs the owner that the lender is seeking legal action to foreclose since payments have not been made on time.
Why Do People Default on Mortgages?
People default on their mortgages if they have suffered from ill health and can no longer afford the repayments because their medical bills are too high.
They may have lost their job, or they may have gone through a divorce that added a lot of expenses. Alternatively, some people may have borrowed more than they can afford and now struggle to keep up.
1. Consult Foreclosure Advice
This is one of the best things to do if you are going through pre foreclosure. You may have just gotten the news and do not know how to react or feel.
With the help of foreclosure attorneys, you can take control of the situation and prepare yourself for things like foreclosure moratorium, foreclosure auction, and so much more.
Seeking counsel will help shift your energy so you can learn all your rights and options available. Most banks have no obligation to do much for you, which is why you should seek your own counsel to help you feel a little more stable.
2. Avoid Blaming Yourself
It is tough to avoid blaming ourselves and wondering if we could have done things differently. There are several reasons why people face foreclosure houses, and most of these can be beyond someone’s control.
For instance, you may have had a mortgage you did not understand and been forced to move. A lot of foreclosure houses are the result of bad timing or tough periods in a person’s life.
Otherwise, no one would want to get rid of their home and sanctuary where their family feels safe. However, foreclosure is a personal thing. Many people who have not gone through it do not understand what it means for someone.
It is up to us as individuals to protect our finances and provide shelter for our loved ones in the best way.
When we cannot do this, it becomes a blame game where we feel like a failure. This is the time you can gain some emotional strength by learning all your rights to make the best choices.
3. Consider Your Long Term Finances
Many people who are going through foreclosure are not doing so because they have a choice. This is where every dollar matters more than ever and why saving money becomes the most important thing. It is best to shop around to find ways on how you can save on all your bills.
You should see if you can find cheaper health insurance, car insurance, and internet packages. Look for other ways you can cut back expenses. This is necessary if your foreclosure was not planned.
Then you need to scramble a bit to get your finances in order because you need to have enough savings for your next game plan.
4. Understand What Foreclosure Means
It is unlikely that someone will come and take over your home overnight. A foreclosure takes time, and there are ways you can stall the process. For instance, in some places like Florida, a foreclosure can take up to 2 years before someone comes and evicts you.
However, you will need an attorney to buy yourself this much time if you want to stall the foreclosure. Foreclosure attorneys will give you some time to save money and re-organize yourself.
This way, you may even have a chance to work out changes to your loan if you are able to improve your finances during this time.
5. Discuss Openly
Financial stress can destroy a person’s life in so many ways. It is best to avoid keeping all this anxiety to yourself. Even if you do not want to speak to your loved ones about the problem, you should hire an attorney and find professional experts who can give you advice.
When it comes to real estate, these kinds of topics are no longer taboo. Many consumers distrust their banks to such a level that defaulting on mortgages is not the social suicide that people think it is.
Talking about your foreclosure can help you feel supported and cared for. You can also find incredible advice, especially if someone can help you navigate the process and get your finances back on track.
Find the Right Support
Going through a foreclosure is a stressful experience that no one should go alone. No one wants to lose their home, but there are many ways to get support.
If you want to take back control of the situation to make life less stressful and reduce the economic impact for your family, give us a call today and find out what your next options are.