Four ideas for anyone facing foreclosure
The worst mistake you can make when facing foreclosure is ignoring the problem.
Foreclosure in Georgia is swift and sure, and you can lose your property in as little as six weeks. Here are four ideas for dealing with the issue in a smart way:
1. Stay in touch.
Ignoring the issue is a mistake. Stay in touch with your lender, and insist that you communicate with the Loss Mitigation Department. To have success, you must get beyond the Collections Department.
Ask about modification programs and see if they offer a "streamlined" refinance program to get your payments down. Whatever you do, don't ignore their contacts, unless instructed to do so by your attorney.
2. Offer to pay something.
If you indicate that you are unable to make any payment, the lender cannot work with you. You must make a good faith effort to pay something now, and the lender must be able to see a path to getting the loan back on track. Build a case as to why and how you will be able to afford the payments in the future if they will just work with you now.
3. Call CredAbility
The well-respected Consumer Credit Counseling Service has changed its name to CredAbility, but it is still able to get things done that no one else can. Get started with your housing foreclosure prevention counseling as soon as possible by speaking with a counselor. Call 1-800-251-2227 to schedule a counseling session by phone or in person.
And beware of other so-called "nonprofit" advertisers offering to "eliminate your debts" or "clean up your credit." Many of these are simply scams designed to separate you from your money.
4. Consult an attorney
Foreclosure is a legal procedure against your rights, and you need counsel to guide you so that you can protect your interests. As soon as you receive a default notice, call a foreclosure prevention attorney. Your state bar association can assist you in locating a lawyer who specializes in this area.
Once you have an attorney on your side, you are more likely to cut through the red tape of your lender. And more attorneys are recognizing the growing need that borrowers have for representation in a foreclosure action. Believe it or not, a smart attorney can pursue a variety of strategies on your behalf, from asking for compromise to demanding the original note and security deed from the original lender. The latter tactic is especially effective at delaying things while the lender tries to find the blue ink documents from years ago.
Be polite but persistent with your lawyer. Everyone is busy, but you are facing a financial disaster. So make sure progress is being made on an ongoing basis.
An expanded discussion of these and other suggestions can be found at money99.com.
John Adams is an author, broadcaster and investor. He answers real estate questions on radio station WGKA-AM (920) every Saturday at noon.
For more real estate information or to make a comment, visit www.money99.com.
