facing foreclosure? 9 things you should know

Facing Foreclosure?

9 Things You Should Know www.flagshipfinancialgroup.com

Facing Foreclosure?


For many Americans, foreclosure is more than a big, scary word or a worst-case scenario. It’s a reality.

Why do people go into foreclosure? • Layoffs • Excessive debt • Medical conditions • Divorce • Job transferring to another state

Facing Foreclosure?


WHAT’S TO BE DONE?If you’re facing foreclosure on your current home or you’re nervous about the future, there are 9 valuable facts that you need to know.

Facing Foreclosure?


YOUR MORTGAGE LENDER DOES NOT WANT TO TAKE YOUR HOUSE AWAY

Foreclosing on a property means your lender will lose a lot of money and be stuck with a piece of real estate they will have to manage. Your lender wants to help you avoid foreclosure or make a deal so you don’t have leave your home.

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Facing Foreclosure?


FINANCIAL DIFFICULTY DOESN’T HAVE TO LEAD TO FORECLOSURE

Losing your job, getting divorced, or having uncontrollable debt doesn’t mean you’re doomed to foreclose on your home. Take some time to evaluate your situation. Whether you refinance, take extra work, or find a roommate, realize that there are options to get back on your feet.

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Facing Foreclosure?


UNDERSTANDING YOUR MORTGAGE CAN HELP YOU AVOID FORECLOSURE

Even if you don’t see yourself going through a foreclosure, review your mortgage paperwork carefully. Many foreclosing homeowners say they were unaware of crucial information about their mortgage. Read all your loan documents and ask your lender any questions you might have. Consulting an attorney isn’t a bad idea either.

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Facing Foreclosure?


FORECLOSURE IS A PROCESS, NOT A SINGULAR EVENT

Average foreclosures take anywhere from two to twelve months after your first missed mortgage payment, and you will receive many notices and letters along the way. This long process gives you plenty of time to take action and come up with an alternative solution. Ask your lender about your state’s regulations so you’ll know exactly where you are in the process and how to proceed.

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Facing Foreclosure?


ALWAYS READ THE FINE PRINTON FORECLOSURE NOTICES

It’s hard to do, but always read any foreclosure mail you receive. Find out the legal details and timeline of your foreclosure. Understand your state laws and how they will affect you. See if your property has a “right of redemption” grace period in which to reverse the foreclosure. You have to know what you’re up against to know what to do next.

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Facing Foreclosure?


ALWAYS ANSWER YOUR LENDER’S PHONE CALLS

Despite the temptation to avoid your lender during a foreclosure, don’t! Pick up the phone when they call, or better yet call them first. Lenders have foreclosure avoidance counselors who are always willing to help you turn your situation around.

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Facing Foreclosure?


SELLING YOUR HOME IMMEDIATELY CAN GET YOU OUT OF A FORECLOSURE

If you’re in the midst of a foreclosure or about to fall into one, fixing up your home and selling it quick could be a great option for you. Talk to your lender to see if you have a “power of sale” clause in your mortgage. A short sale is usually better for your lender than letting your home go into foreclosure.

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Facing Foreclosure?


FORECLOSURE HAS STEEP LEGAL,TAX, AND CREDIT CONSEQUENCES

Every homeowner should know that going through a foreclosure is going to heavily impact credit score and ability to borrow money in the future. Before you resign yourself to foreclosure, make sure you really have exhausted all your options first.

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Facing Foreclosure?


GOING THROUGH A FORECLOSURE DOES NOT MEAN YOU CAN’T GET A VA LOAN

Foreclosing on your house is a rough trial for anyone, but you can still buy homes in the future. And if you’re a veteran or active service member, you can still qualify for a VA home loan just two years after a foreclosure or bankruptcy—sometimes even sooner. Just remember that going through a foreclosure doesn’t make you a bad person, and it doesn’t mean you have to give up on being homeowner either.

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If you anticipate a foreclosure in the near future, don’t give up!

Talk to your lender and your financial advisor to find out what options are available to you.

www.flagshipfinancialgroup.com

facing foreclosure? 9 things you should know

Economy & Finance