How to Avoid Foreclosure

Written on January 23, 2008 – 8:30 am | by PT | |

Foreclosures are getting BIG here in Texas. According to the Dallas Morning News,

“the number of homes facing foreclosure in the Dallas-Fort Worth area has jumped by more than 30 percent.”

My specific county will have over 600 foreclosure postings this month. The norm for the past 2 years has been 350 per month.

I did some quick research on the best ways to avoid foreclosure. Here’s what people can do if they are having trouble making their mortgage payment:

1. Talk with your lender. You should contact your lender at the first sign of trouble with your payment. Lenders have a special Loss Mitigation Department whose job it is to help you avoid foreclosure, if at all possible. You’ll most likely have to provide financial records to them so be prepared.

2. Stay in your home. Apparently, you lose assistance qualification if you move out.

3. Contact a HUD-approved housing counseling agency. Call 1-800-569-4287 or TDD 1-800-877-8339 for the agency nearest you. This service is free of charge.

4. Other assistance groups: