No one buys a home hoping to get behind on payments and have the bank
foreclose on it. Here are a few tips to avoid this problem altogether, and what to
do if it does occur.

Don’t set yourself up for failure

There are two main ways to avoid foreclosure:

    • Don’t put yourself in a situation where you won’t be able to afford your
    mortgage. Know how much you can really afford before you start shopping for
    a home and stick to that price range. Often, people over-extend themselves
    financially when in reality they don’t and won’t have the means to pay their
    mortgage payment. Just because the mortgage lender approves you for a loan
    at a certain amount doesn’t mean you can actually afford the payments on that
    loan.

    • Understand your loan. Many people get into trouble because they don’t
    understand their responsibilities regarding their home loan. There are many
    types of loans where the payments for the first year or first few years are much
    lower than the amount you will pay in the following years. Talk with your
    lender about various loans and make sure you understand how much your
    payment will be at the beginning as well as what your payment might be in the
    future.
Avoiding foreclosure
What every homeowner should know
What to do if you think you’re heading toward
foreclosure

Do not be embarrassed. Instead, contact your lender as soon as you’re
aware that your payment will be late.

Also, never ignore your lender’s phone calls or letters. If you act uninterested in the
fate of your home, your lender will be less willing to work with you in remedying the
problem.

If you don’t want to speak to your lender first, you can contact a
HUD-approved counseling agency that will work with you and your lender
to negotiate a repayment plan. You can call 800/569-4287 for the
counseling agency nearest you.

Another source, the National Foundation for Credit Counseling, can help
you locate a nonprofit agency that could help you reduce your monthly
payments by lowering interest rates or extending repayment periods.

Stay away from companies that promise you swift, effortless results by paying them a
large fee—this is usually evidence of a scam.
Feel Free To Contact Me With Any Questions

Bobby Rose-Broker
BobbyRoseRealEstate.com
972-475-0003
Serving Dallas Area Homeowners Since 1992
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