For those who are having trouble making their monthly mortgage payments or have been served with a foreclosure complaint here are some tips on how to survive a foreclosure: KNOW YOUR MORTGAGE RIGHTS

1. Don't ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

 2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can't make your payments.

5. Contact an attorney - Understand foreclosure prevention options.

Speak to an attorney about valuable information concerning foreclosure prevention options (also called loss mitigation).

6. Prioritize your spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

7. Use your assets.

Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

8. Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may or may not be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or an attorney could provide you with.

9. Don't lose your house to foreclosure recovery scams!

If any firm claims they can stop your bankruptcy or foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

Many families in our community are feeling the economic pressure caused by record high gas prices, a depressed real estate market, and a general downturn in both our local and national economies.  Even the most budget-conscious families are finding it hard to plan for the changes currently impacting their financial health as the cost of living continues to increase while wages are often stay the same or even decrease.  Unfortunately, one of the consequences of this economic environment is the rapid increase in the number of home foreclosures here in our community. The loss of a home only makes it that much more difficult to survive a financial setback and not only has a serious economic impact on the individual homeowner and his or her family but can have a psychological impact as well.

However, there is some good news for homeowners facing a foreclosure who know their rights.  There are many steps that a homeowner can take to prevent a foreclosure or even stop a foreclosure that has already commenced.  It may be hard for some to believe but the last thing any bank wants, especially in this real estate market, is to own another foreclosed home.  If you are facing a foreclosure, you or your attorney must keep in constant contact with your lender and keep them up to date on your financial situation.  In many cases homeowners can work with their lenders to get through their current situation as long as they demonstrate to the lender that they are making an honest effort to pay and that their financial situation is only temporary.  Even after the lender has retained an attorney and filed the foreclosure action it is still possible to stop the foreclosure action and have your mortgage reinstated (often on terms more favorable than the terms of the original mortgage). 

If you are a homeowner and are having difficulty staying current on your mortgage payments or if you have been served with a complaint for foreclosure, it is absolutely critical that you discuss your options with an attorney immediately.  Foreclosure is a time sensitive matter and the lender’s attorney’s fees and costs are accruing every day. Once the house is sold at the foreclosure auction there is very little that can be done to reverse course.  However, from the moment that you are served with the complaint until the date the sale is complete (even after the lender obtains a judgment) there are many options at the homeowner’s disposal to prevent the loss of the home and an attorney can help you navigate this process.  Even if you cannot afford the home and simply want to deed the home back to the lender to preserve your credit, it is imperative that you act immediately to keep the lender’s attorney’s fees and costs from accruing. The lender’s attorney’s fees and costs will be added to your arrears and will therefore increase the amount that is required to get current with your mortgage company.