Tuesday, March 11, 2014
There are few pieces of mail more daunting than a foreclosure letter. Getting a notice of possible foreclosure can be scary, but there are steps homeowners can take to relieve the stress of a foreclosure in New Hampshire. Although you may be struggling to make your monthly mortgage payments, you do have options.
In New Hampshire, the process to stop foreclosure can be relatively fast. Be sure to do your research and find out your options before you allow a lender to foreclose on your home. If you are at risk of losing your home, follow these 6 simple steps.
1. Get in touch with a housing counselor or attorney immediately. A housing counselor or attorney can give homeowners specific, personalized advice to help stop foreclosure. A housing counselor can evaluate your needs and point you to some helpful resources. The best way to utilize a homeowner’s skills is to be open about your situation. Make sure that you answer questions honestly and let your expectations and limitations be known up front to avoid any confusion.
2. Prepare a hardship letter. A hardship letter gives the ender an overview of your circumstances. Although a letter alone will not be enough to stop a foreclosure, it can be a good start. Your housing counselor can help you draft a hardship letter to present to your lender in conjunction with other documentation. The letter will be a detailed account of the circumstances that led up to your current situation as well as what you are asking for specifically in order to get caught up on your payments. Remember, it is best to work wit your housing counselor or a foreclosure attorney to develop a strong hardship letter.
3. When at all possible, try to contact your lender to explain your situation. Reaching out to the lender shows that you are making a good faith effort to pay. This is also a good idea because it immediately alerts the company to your circumstances so they can start to work with you. Contacting the lender can be the first step to successfully stopping a foreclosure in New Hampshire. Most lenders are more interested in letting you keep your home than moving forward with foreclosure procedures. What many homeowners don’t realize is that a foreclosure can cost the lender upwards of $20,000, not to mention the time and trouble of going through the process. This is especially a good idea for those who have a temporary financial burden such as being let go from work or an unplanned medical expense.
4. Get the amortization period extended. If you can do this, it means that the life of your loan is longer which can result in lower minimum payments each month. For many homeowners in New Hampshire, this is an alternative that will save their home.
5. Inquire about forbearance. Forbearance is similar to deferring your student loan repayment until after graduation. You can have the option of making partial payments or no payments during an agreed upon period of time. You will still be responsible for the entire loan amount, but forbearance can help prevent foreclosure on your home. The terms of each forbearance agreement will depend on the details negotiated with your lender.
6. Attend a New Hampshire HUD foreclosure workshop. The state of New Hampshire has options and resources for homeowners who may be facing foreclosure. The Foreclosure Prevention Initiative is a great place to get started. This program was started in 2012 to help homeowners who may be at risk of foreclosure.
Foreclosure may allow your mortgage lender to seize your property, but you can stop foreclosure with these steps. Understanding your rights and responsibilities concerning a possible foreclosure can make a hue difference. Saving your family’s home is worth it.
If you have already received a foreclosure notice, you should take steps to address to your situation immediately. Find a qualified bankruptcy attorney in your area for a office for a free, confidential consultation. You don’t have to deal with this on your own.
By Bankruptcy Attorney Christopher W. Kelley