If you’ve gotten a foreclosure notice of default and want to know what the heck is going on, keep reading.
Basically, a foreclosure notice of default is a document that has to be filed by a lender to start the process of foreclosure.
The foreclosure notice of default must be sent to anyone who has an interest in the property (any other loans, lenders, or even contractors who are owed money for work done to a property will get a copy).
The foreclosure notice of default must also be published in a newspaper and physically posted in a prominent place on the property itself.
Although this can be really embarrassing to someone going through foreclosure, it’s actually a very important protection for consumers.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning.
The notice of default is a very important step within the foreclosure process that gives people with an interest in the property to step forward and claim their rights – before it’s too late.
If you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action.
Here are a few key steps you should take:
1) Stay calm and reach out to your lender.
This may sound obvious, but it’s probably the most important. Anyone in foreclosure is dealing with a lot of stress beyond just the property. These situations don’t happen overnight, and they take a while to solve. You’ll get through it by practicing good coping techniques and taking good care of yourself and your family. Panic leads to bad decisions, so stay cool.
That said, there are a number of things you can do to avoid foreclosure in Fort Worth. It’s important to take action. The first step is to contact your lender and find out what options you have.
2) Educate yourself.
Learn everything you can about the foreclosure process in your state so that you know what’s happening and what’s coming up next.
Find out from your lender if you could qualify to refinance your mortgage into a lower payment. another option to ask about is if you can apply for a Mortgage Loan Modification. The Home Affordable Modification Program
(HAMP) allows struggling homeowners to modify their loans, reducing monthly payments. A Mortgage Loan Modification might also include Principal Forgiveness
where they agree to forgive a portion of your principal on the loan. Principal forgiveness is only considered if you owe more on your home than it is worth.
Another option might be to request forbearance
from the mortgage company. If approved this will pause your mortgage payments. But before the forbearance period is over you will need to have a new agreement with the lender. Unless you can pay the missed payments in a lump sum, the mortgage company will likely set up a plan to either increase your monthly payment or to extend the life of your loan.
3) Gather your resources.
There’s also many non-profit and government resources available out there. You’ll want good legal and tax advice along the way. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules.
It’s also a good idea to talk to a HUD-approved housing counselor
if you want to learn about different loss mitigation
options. You can use the Consumer Financial Protection Bureau’s Find a Counselor
tool to get a list of HUD-approved housing counseling agencies in your area. You can also call the Homeownership Preservation Foundation (HOPE) Hotline
, which is open 24 hours a day, seven days a week, at 888-995-HOPE (4673
4) Learn your options.
We’re here to help you avoid foreclosure. We buy houses with cash. We can help you with short sales and even rent-back situations so you (potentially) may be able to keep living in your home for awhile. There are many more options than you think. Don’t hesitate to reach out to us to discuss your situation. (817) 808-4911
Also, you can contact the bank yourself and ask them if they will permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan.
The banks involved don’t want your property. They aren’t in the real estate business. And many of them will work with you if you aren’t too far behind. You can probably slow down or possibly even stop the foreclosure process if you reach out to the lender and keep them updated as things change.
Texas Best Homebuyers
We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over Fort Worth are going through the same troubles. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.
We may be able to help you avoid foreclosure… connect with us today and lets discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you your options so you can move forward without the fear and stress of foreclosure.
Call us anytime (817) 808-4911 or connect with us on our website
and we’ll lay out all of your options for your specific situation.