Avoiding Foreclosure
Presented by Freddie Mac

The last thing any homeowner wants to think about is losing the family home. No one expects to lose their house to foreclosure, but by understanding the foreclosure process and what may lead up to it, you can be in a better position to recognize and address potential problems that may impact your ability to make every mortgage payment on time.

What is foreclosure?

In the contract you signed when your mortgage lender loaned you money to buy your house, you agreed that if you can’t repay the loan, the lender can foreclose to take ownership of the house.

If you do not pay your monthly mortgage payment, you are technically in default on your mortgage. State laws vary, but generally, a loan that is as little as 90 days delinquent can be considered in foreclosure.

Your lender may send you a notice indicating that they are starting foreclosure proceedings, but don’t wait; take steps to prevent a foreclosure as soon as you realize you are having trouble paying the mortgage!

• Learn to recognize the warning signs of foreclosure.
• Know what early steps you can take to avoid foreclosure.
• If you are in the midst of a foreclosure, know the dos and don’ts.
• Know where to get help in dealing with issues that could lead to foreclosure.

Have a Plan B.

Don’t wait until you’re in a financial predicament before assessing your options. The time to develop a backup plan is not when things have gotten so bad that you are facing foreclosure, but when things are going well and you can prepare for the unexpected “what if’s” that happen in life.

Quick Knowledge Check

Take our Avoiding Foreclosure Knowledge Check to find out how much you know about protecting your home and avoiding foreclosure.

What to do in special circumstances…

If you are a victim of a natural disaster.
If your property has been damaged or destroyed by a tropical storm, hurricane, tornado, flood, or other disaster, talk to your lender immediately. They often have special disaster relief options to help you.

Check our Protection section for more information on help after a natural disaster.

If you are a service member on or recently released from active duty.
There are special financial relief options in place for service members through the Service Members Civil Relief Act (SCRA). Talk to your lender about them.

If you are a veteran.
The Department of Veterans Affairs has produced a streaming video to provide information to
vets facing foreclosure.

To View Foreclosed Homes got to www.CentralValleyHomes.com

Carol Perdew
(209) 239-7979
www.CentralValleyHomes.com

Read the full TIPS TO HELP PREVENT FORECLOSURE story

Go to every Mortgage Adviser in town - it is well known that every time a credit check is ran on you a “footprint” is left. When banks review your credit they see these footprints and assume that you must have been declined - or else why would you be asking them for money?

all First Time Buyers set off with the intention that they will shop around until they find the perfect property. Unfortunately the perfect property doesn’t exist, and some amount of compromise is always required. Don’t view so many houses that you begin to forget why a certain place was once your favourite. The same applies to mortgage deals if you read too many articles and sit with too many advisers your head will start to go round and round in circles. This feeling is paralysis by analysis. Eventually you will be so scared to make the wrong decision that you won’t make any decision at all. To combat this just set your stall out at the beginning, i.e. if you want a 3 bed with ORP in a good area then stop when you find it. Don’t wait for the perfect 3 bed with lots of ORP in a fantastic area.

Overstretch themselves - the simple rule to follow is go for the cheapest property you will be happy in. Stick to the traditional 2.7 times joint earnings for your mortgage. It is better to live in a lesser home and have a life than to live in a mansion but have spam for tea every night.

Say no to life insurance - as a FTB it is likely that you will have no life insurance before you take out your first mortgage. Many FTB’s leave it that way as they feel that it something they don’t really require. However there comes a time in everyone’s life when they want life insurance. It usually comes when you have children, or when you have a health scare. Now be aware that Life Insurance isn’t always cheap. A £10 policy at age 21 will be considerably more expensive when your aged 41. I am the Tightest Man in Britain and I can still see that life cover is a necessary evil.

Read on….