The best thing to do in your situation is NOT ignore the situation. It will be very hard to reinstate your loan once you fall too far behind. You will most likely lose your home if you do this. Most of us try to avoid the conflict of dealing with the lender when we fall behind on payments. Remember, the lender does not want your home. They want you to keep it, but they have an investment they have to protect and will take whatever necessary action they have to in order to protect themselves from a loss.
Contact your lender as soon as you realize you have a problem. Don’t ignore mail from your lender. Some lenders offer alternatives and great advice to assist you with getting back on track. Make sure you are knowledgeable about what rights you have and the lender has in the event you get to foreclosure.
There are foreclosure prevention options. Use the internet to research what is available in your state. If you need some additional counseling, HUD approved counselors are available for free and nominal charges. Approved HUD counselors can help you figure out your finances and offer great insite on what options you may have.
Cut excess spending. After healthcare, your home should be your priority expenditure. Look to see where you can cut costs. Some suggestions could be monthly memberships, cable & internet, dining out and entertainment expenses. Cutting back on these items temporarily may give you just enough to get caught up.
Assets to the rescue! Do you have jewelry, a second car, musical equipment, artwork or anything else that you can sell for cash to reinstate your loan? Can you pick up a second job? Can you borrow money from family or friends? What resources do you have access to?
Avoid foreclosure recovery scams. Many companies have access to public records and run reports to show everyone in a given area that is potentially getting foreclosed. These comopanies prey on homeowners like yourself that are desperate to keep their homes. They will promise they can stop the foreclosure and give you hopes of resolving your problems. But the majority of them are scams and by signing documentation with them you givev them rights to act on your behalf making important decisions that could leave you as a renter of the home instead of the owner. The best thing to do is go to the HUD web site and find an approved foreclosure counselor if you need assistance.