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Facing Foreclosure Head On Or Head In The Sand
April 5, 2010 by man
Filed under Michigan Refinance
The economy crushed our neighborhood. Empty lawns, silent barbecues, and vacant driveways surrounded empty homes on our streets. I knew I was not going to be able to pay my monthly mortgage but I was paralyzed.
I was sat on the bench press in the basement where I was determined to lose weight fast and look good quick. I think I used it once. I noticed the strapless wedding gown that my wife wore once. I packed away the tiny space heater, the electric breast pump, and the kids old wood burning kit into a box and taped it shut.
With three energetic boys and no daughter to inherit my gown, I no longer needed either item. We bought this house with my parents help right after I was married and pregnant with my first. It no longer mattered how we got to here from there in eleven years. What mattered is that I had no idea how to avoid losing our home.
I decided to dig in and find out what I needed to know. I find my mortgage documents and contacted the entity that now owned my loan. I found out that my loan was one of the types that offered free counseling services. This was when I entered the world of loan modification and learned the rules.
VA and HUD also have free counselors to determine if you qualify for loan modification programs. You may also fit a special needs category that entitles you to modified loan. Work quickly and do not waste any business days. The clock is ticking on your foreclosure.
You have a specific number of days from the time you default to the day your home will be taken back by the lender. You have several weeks to cure the payments you are in arrears. If you can cure the default you will then resume your regular monthly payments as if nothing ever happened.
The process may vary from state to state. You need to check to determine if you have a one year right of redemption. The time period may be different and it may not apply to your state. Redemption rights should be established.
What if you cannot bail yourself out or find a solution in partnership with your lender? Your home will be scheduled for auction. Do not wait until you are standing in the middle of your garage sale holding your default notice to find a solution. Start the minute you even think you may not be able to make your monthly mortgage payment.
