SEATTLE NEWS ARCHIVES & FEATURES
‘What happens if my home is foreclosed on?’
Aug 31, 2011, 8:38 AM | Updated: Mar 4, 2016, 5:59 am
It's important to understand what can happen if you fail to take action and foreclosure becomes unavoidable. The process can be stressful, embarrassing, and it can have long-lasting consequences. (AP Photo)
(AP Photo)
It’s important to know your options and understand all the potential solutions that may be available to help you avoid foreclosure. It’s also important to understand what can happen if you fail to take action and foreclosure becomes unavoidable. The process can be stressful, embarrassing, and it can have long-lasting consequences.
A foreclosure is the legal process where your mortgage company obtains ownership of your home (i.e., repossess the property). A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan.
A foreclosure can usually be avoided-even if you already received a foreclosure notice. However, you must take action as soon as you can
Keep in mind, your mortgage company doesn’t want to foreclose on your home. Just like there are consequences for you, the foreclosure process is time-consuming and expensive for them. However, some homeowners simply don’t take advantage of the help available and foreclosure becomes the only option.
1. Gather your financial information – Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:
* Your mortgage statements, including information on a second mortgage (if applicable)
*your other monthly debt payments (e.g., car or student loans, credit card payments), and
*your income details (paystubs and income tax returns).
2. Prepare to explain your current situation – Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment, why this is a long-term problem and confirm that you are ready to leave your home to avoid foreclosure. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.
3. Contact your mortgage company – Tell representatives you are interested in understanding all possible solutions.
For more information, tune in to “The Foreclosure Survival Guide” on “Real Estate Today,” 9-10 a.m. Sunday on the new the new 97.3 KIRO-FM Weekend.
