Losing your house is a nightmare, but it happens to people all over the world every day. Here are some tips for protecting your home in financial hardship to alleviate your concerns.
The last thing anyone wants is the bank’s representatives or the police turning up for foreclosure. It will be embarrassing and heartbreaking. Your home should be your safe place. Fortunately, the law is on your side with the proper legal representation. Firms like Manfred Sternberg & Associates specialize in foreclosure issues and can help you during the worst times. However, it is best not to leave it too long before contacting a lawyer. In fact, you should call a lawyer as soon as you know you will have trouble keeping up with your mortgage.
In addition to calling your lawyer, always get in touch with your mortgage provider. The worst thing you can do is ignore letters and miss payments since this can be used against you. A bank’s lawyer can prove that you willingly missed payments on the money you owe. However, if you get in touch with your lender ASAP, it shows you have done the responsible thing. In that case, it is likely your mortgage provider will work with you to come to a reasonable arrangement. For example, they might agree to reduced payments until you rectify your finances.
In the United States alone, personal debt is at a record high of over $14 trillion. When you find yourself unable to pay the mortgage, it is time to look at your current financial situation and change your spending and lifestyle. Cut subscriptions, expensive luxuries like salon bookings, cancel credit cards and switch to lower-priced groceries. It could be that you are spending too much. And any changes you make may only be temporary. But if you really make some sacrifices and compromises, you will find you can pay priority bills like your mortgage.
While you try to work out what to do in a mortgage situation, it’s helpful to dig out and go over all your paperwork related to your home. In some cases, you might have legal protection included that you have been paying for anyway. For example, you may have mortgage protection insurance as part of your initial agreement. This actually covers your payments for a set amount of time while you get back on your feet to begin paying your mortgage again. A beneficial feature of current mortgages. If you aren’t sure, contact your lawyer to check for you.
They aren’t often advertised. But in many developed countries like the UK and USA, there are benefits and assistance plans you can apply for. For example, you can apply if you are in danger of losing your home because of missed payments. However, these usually come with strict stipulations, so check before applying. You will usually be accepted if you cannot work due to illness or a disability. The UK’s Universal Credit system can cover expenses, so it’s worth checking. Additionally, the USA offers Help for Homeowners’ government assistance.
Losing your home can happen to anyone. If you find yourself in this situation, contact a lawyer ASAP, arrange something with your lender and rearrange your lifestyle to avoid defaults.