When you face losing your home, your top priority may be to stop foreclosure from happening. But how can you do that?
Freddie Mac, one of the two quasi-governmental companies that buys mortgages on the secondary market, has some suggestions on how to stop foreclosure.
The first two ways that Freddie Mac suggests you stop foreclosure are by saving money and reducing expenses. Start an emergency fund to cover unexpected expenses and to help you get by financially if you lose your job. Cut your costs by working out on your own instead of going to a gym or by canceling cable television. Stay in and read or play games rather than go out to the movies. Cook at home and bring your lunch to work. Save every penny you can.
If you’ve cut your costs and started to save but still can’t make your mortgage payment, Freddie Mac offers some next steps to stop foreclosure. They are:
Call your lender — this simple step can go a long way
Be honest with your lender — tell the lender your situation, tell the lender you want to keep your home and stop foreclosure
Know what you owe — pull all of your credit card statements, mortgage documents and other loan paperwork
Talk to a housing counselor — many non-profit agencies can help you figure out what to do to stop foreclosure
Contact a non-profit housing organization– a great place to start is the HOPE national hotline — 888-995-HOPE
Know your options — forbearance, reinstatements, repayment plans, and loan modifications
It may take some sacrifice to stop foreclosure but if you take steps early, you’ll improve your chances.
For more information, check out our other stories on foreclosure at ThinkGlink.com.
February 6, 2008