How to Stop Foreclosure on Your House

Foreclosure.  It’s a big, scary word with big, scary possibilities attached to it.  But create a plan and be proactive.  You can save your home.

There are many ways to stop foreclosure on your house in Grand Rapids, or in any city.  Loan modifications, a Partial Claim, the FHA-HAMP program, Deed-in-lieu, and pre-foreclosure sales are just some of the options available to you.  While we are not attorneys, and this should not be construed as legal advice, here are some good things to remember.

Think1.  Don’t ignore the situation.

The longer you wait, the fewer options you may have. By being active and facing the situation head-on, you have a much better chance of finding a good solution.

2. Contact your lender, and respond to their messages.

If you create an open dialogue with your lender, they may offer you several options to help the situation.  The early letters they send will often include methods on how to stop foreclosure on your house in Grand Rapids. Read those letters, and follow up with the recommendations within them.

Later letters sometimes include important legal notices.  It is crucial to understand the dates and steps of the foreclosure process, and these letters can help.  Also, they can be very valuable if you decide to work with an attorney.

Also, remember that ignoring these letters is NOT an excuse in foreclosure court.  It’s in your best interest to be well informed.

3.  Know your options!

There are many, many options available to help stop foreclosure in Michigan.  Each of these have different pros and cons, and you should consider each of them carefully.  Some choices, such as selling your home to a reputable buyer, can be relatively quick and hassle-free.  However, if you want to stay in your home, you should learn about your options.

MeetingAn excellent resource is the U.S. Department of Housing and Urban Development, or HUD.  You can visit their site for a list of their applicable programs here.  There are many programs available, including:

-Home Affordable Modification Program (HAMP)
-Home Affordable Refinance Program (HARP)
-Home Affordable Unemployment Program (UP)
-FHA Special Forebearance

The State of Michigan also has great resources on how to stop foreclosure on your house in Grand Rapids (or Kalamazoo, Portage, or Caledonia for that matter).  Visit this page for a list of their resources.  Some things there include:

-Michigan Lending and Foreclosure Guide
-Warning Signs for Foreclosure Scams
-Detailed Timeline of the Foreclosure Process
-Borrower Worksheet (to help you get organized)

4.  Contact an Attorney.

If the foreclosure process has already begun, you should contact an attorney.  If you are unable to afford one, there are low- and no-cost options available for you.  The Michigan Foreclosure Prevention Project is a great place to start.

They have links to your counselors in your county, throughout Michigan.

Partners5.  Prioritize your spending, and take a close look at your assets.

When finances get stressful, it’s very easy to put up a mental wall between yourself and your money.  However, if you’re able to take a close look at your budget and spending, there may be areas where you can free up some funds.  You can then put any extra dollars toward your mortgage.  In addition, think about your assets.  You may be able to sell some of your non-essential items to get some much needed cash.

6.  Avoid Scams.

Unfortunately, there are people in the world who try to take advantage of homeowners facing tough times.  Be VERY careful of people who demand large upfront fees in exchange for their help with your foreclosure.  Start with the resources listed above, such as HUD, the State of Michigan, and the MFPP.  They can help you find legitimate professionals who won’t charge an arm and a leg.

As always, feel free to contact us at Honeybee Homes at (616) 606-3390 for additional help regarding your home.