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Top 10 Things Not To Do During Foreclosure

Foreclosures
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There are many positive things you should do during the foreclosure process that can help, but there are also some thing you should avoid doing during the foreclosure process as well. Read on for the top 10 things not to do during foreclosure.

  1. Avoid your lender at all costs: If you don't speak to your lender, it can make the lender more eager to expedite the foreclosure process since the bank will believe there is no hope of resolution. Further, avoiding lenders calls can preclude the possibility of negotiating or making a deal to save your home.
  2. Give up hope as to saving the house: If you want to save your home, there may be hope that you can do so. Organizations exist such as Hope for Homeowners and Hope Now that can help you restructure your mortgage loan. Further, your lender may be willing to work with you to reduce the amount you owe or to cut your payments or interest rate, especially given federal incentives to do so that were made available to lenders as part of the 2009 economic bailout plan.
  3. Try to hang on to a house you don't want: If you do not want to keep your house, then trying to hold on to it just to avoid foreclosure is not a good idea. Instead, consider a short sale. This is a situation in which you find a buyer, but the buyer makes an offer for less than the home is worth. You can talk to the bank and get them to agree to accept the buyer's offer as full payment on the mortgage debt; the lender may agree because they want to avoid the costs and hassles of foreclosure.
  4. Assume foreclosure is your only option: Short sales, renegotiation, refinancing or bankruptcy can all be alternatives to foreclosure. Don't assume you have no choice in the matter- be proactive in finding ways to help yourself.
  5. Not seek help or guidance- Foreclosure avoidance counselors, state and local representatives or agencies, and attorneys may all be able to provide you with assistance to save your home, avoid foreclosure, or work your way through the foreclosure process.
  6. Leave your home right away: The foreclosure process can last several months. During this time, you can remain in your home and save the money you would otherwise be using to make mortgage or rent payments. This cash savings can come in handy when it comes time to buy another house or to put down a deposit to live in an apartment.
  7. Do damage or vandalize your home: Some homeowners react out of anger and damage the property. This is a bad idea, and the bank or lender may take legal action against you.
  8. Refuse to face reality: You should not avoid taking steps to help yourself, nor should you avoid preparing for the day when foreclosure comes. If you delude yourself into thinking that the problem will go away, you may not be able to adequately act to stop foreclosure or to prepare for the day when it happens.
  9. Not save for the future: Once you know you are going to be foreclosed on and lose your house, begin funneling all of the money you used to spend on your mortgage- plus any other cash you can save from your budget- into a savings account. it can be hard to find a rental home or apartment after foreclosure due to the black mark on your credit, and many landlords will require a larger deposit or advance payment of rent. Build up a savings account to pay those costs so you don't end up not being able to afford a place to live.
  10. Ignore court documents or requests: This can get you into legal trouble and can cause you to face more fees or costs. If the court mandates that you do something, comply with the law.

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