Tips for Avoiding Forclosures

Here are 6 tips for avoiding foreclosure from the Federal Housing Administration:

1. Don't ignore the problem. [:'(] The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Contacting the state Government Housing Office for information about foreclosure law.

5. Understand foreclosure prevention options (www.fha.gov/foreclosure/index.cfm).

6. Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development funds free or very low-cost housing counseling nationwide - (800) 569-4287 or (800) 877-8339.

Below is just a short list of the most common ways to stop foreclosure:

• Reinstatement Plan
• Repayment Plan
• Loan Modification /
• Loan Restructuring
• Loan Refinance
• Forbearance Agreement
• Redemptions
• Partial Claim
• Pre-Foreclosure Sale
• Short Sale
• Deed-in-Lieu of Foreclosure

Resources:

• Avoiding Foreclosure For Borrowers: www.freddiemac.com/avoiding_foreclosure
• NeighborWorks Center for Foreclosure Solutions: www.nw.org/network/neighborworksProgs/foreclosuresolutions/default.asp

Another Option:

Foreclosure rates here are higher than many of us have ever seen.    Lets say that someone purchased their home for $1,800 per month and have now seen their payments jump up to $3,000-$4,000.  Why not rent something smaller and rent out your larger house to someone who can afford it? 

   The odds of getting as much in rent as they are putting out in mortgage payments is very slim.  In fact, it is basically impossible.  However, if you can rent somewhere cheaper and rent out your home for as close to the mortgage as possible, it just may create a buffer zone that will allow you to hang onto your home until the market improves.  Obviously, this is not a "cure all" solution.  Often times, the owner will be so far out of the park with their new adjusted rate that saving the home is impossible.  But with the catastrophic impact that a foreclosure will have on your credit, family, and finances, it seems to me that ANY possible solution would be worth the time it takes to see if it will work.

Property Mgmt Companies:

Antelope Valley Property Management 
Jonathan Mitchell
Cell Phone: (661) 219-3016

Kennedy Management
John Kennedy
(661) 945-8888

World Class Property Management
Marylou or Hope
(661) 942-9200