Jacob Benaroya, president and managing partner of Biltmore Capital Group, which purchases distressed loans from a wide array of lending companies, offers these seven tips for home owners facing foreclosure.
Don’t hide. Open the mail; answer the phone. Respond.
Be proactive. Contact the bank or lending institution and discuss your financial situation.
Know your mortgage rights. Review loan documents so you know what your lender may do if you can't make payments.
Avoid foreclosure prevention companies. Don’t pay money for foreclosure advice..
a HUD-approved housing counselor. The U.S. Department of Housing and
Urban Development (HUD) funds free or very low cost housing counseling
nationwide. They’ll help you understand the law and your options,
organize your finances and represent you in negotiations with your
lender if assistance is required.
Prioritize spending. After
health care, keeping your home should be your first priority. Review
your finances and see what spending can be cut in order to make your
mortgage payment. Look for optional expenses - cable TV, memberships,
entertainment - that can be eliminated. Delay payments on credit cards
and other "unsecured" debt until you have paid your mortgage.
other assets. Do you have assets such as a second car, jewelry, a whole
life insurance policy-that can be sold to help reinstate the loan? Can
anyone in the household bring in additional income?
Source: Biltmore Capital Group
I hope you never know anyone who needs this advice, but if you do this
is some solid information. I have done a lot of work on the front range
and have seen many people lose their home to foreclosure. Sometimes it
can be prevented and sometimes it can't, but every option should be
explored. Again, I hope you never need it, but here it is anyway.
Cherry Creek Mortgage Company