Holding on to Your Dream Home

When news of the impending economic crisis early last year hit our screens, people reluctantly assumed the worst. There was still room for dreamers: a stable and reasonably well-paying profession, a dream house (or condo with a laundry area), and enough leftover from funds to spend on that glorious pair of boots or that shiny set of golf clubs from the shop display.

Like a bad movie, businesses began failing and people in stable jobs were laid off. Ultimately, after reports of the rise in foreclosures, the dream house or the condo with the laundry area became just that, a dream.

Studies have been published reporting that the foreclosure crisis is a little exaggerated but interestingly enough, credit counselors say that the number of inquiries on the subject have definitely gone up. People are getting worried of losing their homes due to missed and delayed mortgage payments as affected by the current state of the economy.

All hope isn’t lost, however. Credit counselors and law centers offer options and assistance to people who have an increased chance of facing foreclosure. Depending on the kind of loan you have, you may be able to get temporary loan reductions as well as waived payments. Alternatively, if you possess a relatively good credit record, you might want to negotiate plans for short-term repayment to make up for the discrepancy.

The important thing is that you begin asking about options and solutions as soon as a payment has been missed. While creditors often do not contact you until several payments have been missed, most of them will submit a report to credit bureaus. The reports will affect your credit score and could potentially hurt your chances of securing another loan to refinance your mortgage. Further postponement of inquiries can also result to a high increase in fees once your creditor has filed a notice of default, due to the accumulated late and legal fees.

These seem all too simple and easy to do but creditors can make avoiding foreclosure harder for you, if you don’t push hard enough. Since most lenders don’t normally redirect inquiries to loss mitigation until you’ve missed several payments (by which time, your account might have been passed on to collections), you would need all the time you can get to talk to the right people. Seek help from established firms like a debt reduction law center and brace yourself as options start opening up to help you secure your home.