Potential clients often ask me for advice on how to avoid foreclosure. Here are a few important tips I recommend.
Obtain and Document Income
Contrary to free “advice” available on some Internet websites, foreclosure defense is not about getting a free home. While there are ways of delaying or stalling foreclosure, that is only what can be done: delay the inevitable. The only sure means to avoid foreclosure is paying the mortgage loan for the property. To do so, a homeowner needs income. For purposes of obtaining a loan modification, a lender will generally consider any documented source of income. This is an important qualification for showing a lender that you qualify for a modification: you must be able to account for where the money comes from. This advice is usually most relevant to self-employment and rental income. Lenders generally want to see such income deposited in a bank account. Without such deposits, a homeowner faces a difficult time trying to prove they really earned the alleged source of income.
An important side note: homeowners facing foreclosure who do not have the required income to obtain a loan modification should still contact an attorney for assistance with their case. An attorney can help a homeowner review their options and decide with them their best course of action.
Keep a Record Of All Contact With Your Lender
One of the single, most important pieces of advice I can give homeowners to avoid foreclosure is to keep a record of all contact with your lender. If you find yourself in a situation where legal action may be necessary, having a record is a huge help in advancing your case. Even homeowners with the best memories are often unable to remember specific details occurring years ago. Keeping a paper trail of your communications with a mortgage lender can be one of the best things you do to avoid foreclosure.
Seek The Help of a Foreclosure Defense Lawyer Sooner Than Later
Most importantly, seek the help of a foreclosure defense lawyer sooner than later if you find yourself facing foreclosure. Stopping a foreclosure becomes increasingly difficult as a foreclosure date is scheduled (but still not impossible; homeowners in any stage of the foreclosure process should talk to a attorney if foreclosure defense is needed). The sooner you speak to an attorney, the better luck an attorney will have in helping you resolve the problem.
If you need help to avoid foreclosure, contact me for a consultation.