According to RealtyTrac Inc, the number of US homes receiving foreclosure filings will climb 20 percent in 2011, reaching a peak for the housing crisis as unemployment remains high and banks resume seizures after a slowdown.
A record 2.9 million properties got notices of default, auction, or repossession in 2010 and banks seized more than 1 million homes. There are many options available to help you avoid foreclosure and to make your payments more affordable. Your first step is to see if Making Homes Affordable Program is for you. http://www.freddiemac.com/avoidforeclosure/plan.html
If Making Homes Affordable Program is not an option, other alternative solutions include: refinance, forbearance, repayment plan, loan modification, short sale, and deed-in-lieu of foreclosure. I will go into more detail for each of these options in a later article.
If none of these solutions work for you and foreclosure seems likely, I’ve included some do’s and don’ts to help make the situation less scary and prevent things from getting even worse.
#1. Call your lender immediately if you missed a payment or will miss one in the near future.
#2. Seek legal or professional representation. He/she will help you protect your financial interests.
#3. Stay in your home for as long as possible. Save up your money to rent when the time comes. The foreclosure process is slow and you may be able to stay in your home rent free for some time.
#4. Know your financial responsibilities. You may be responsible for taxes when the lender sales your home.
#5. Beware of scams. Do your homework and make sure you are dealing with a legitimate person or company.