When you have not paid your mortgage bill for some months Pre-Forclosure proceedings begin. When a home owner receives a letter stating that they are in pre-forclosure it is often the first icy jolt of reality and fear that they feel. Most people will already be well aware of there failure to pay their mortgage the last few months but people (and none of us are immune to it) have a way of ignoring reality and pretending that the inevitible won't happen. Pre-foreclousre is often a sobering wakeup call to many home-owners.
First and foremost, don't panic (unless you're one of those people who responds only to panicing! In which case, by all means, allow it to jump start you into action). A letter of Pre Forclosure is exactly that... PRE. Yor home is not yet the banks... it is still yours. Think of this letter as the shout from a friend to get off the railroad tracks cause a train is coming. There is still opportunity left to avoid getting hit. Take your letter of Pre-Foreclosure as a sign that maybe you cannot handle the situation on your own any longer. Consider allowing a third party to enter into the equation. There are numerous entities established which can help you out of your predicament... indeed some exist solely for that purpose. A loan office or mortgage broker, an attorney or lawyer who specializes in real estate law, Sometimes, even the lender itself will help you to avoid forclosure. The most important thing, however, is to not let the situation progress any further. Seek council. Seek Advice. Seek Help
Don't let the bank take your house.If pre-forclosure has started it usually means you have a 120 day late - that means it's been four months since you last made a mortgage payment. That's a long time and pre-forclosure has started because the bank does not think you are going to pay. Let the bank know about any mitigating circumstances or better yet, legal reasons why you have not been paying your mortgage. If you have been ill sometimes the bank will take that into account and stop pre foreclosure proceedings. But usually they won't. If you are in preforclosure, the time has come for definitive action. Pick up the phone and call your lawyer or mortgage broker to start your way to a solution. A short sale may be an option. Many times people will have family members buy the house in order to "keep" it. There are many different ways out of foreclosure and pre-foreclosure and the solution varies person to person and situation to situation.
© 2008 Stopping Bank Foreclosure.