Guide to Avoiding Government Foreclosures

Government foreclosures could be avoided. Whether you are in danger of facing government foreclosure or afraid to face one in the future, there are some ways to protect your property from the clutches of foreclosure.

Talk to Certified Housing Counseling Services or Your Lender

There are housing counseling services that provide assistance and advice on how to avoid foreclosure. Look for services that are government certified to provide you foreclosure prevention assistance.

Most of these counseling services are provided for free by non-profit organizations that work in partnership with the federal government to help troubled homeowners find ways to save their properties from foreclosures.

Be wary of counseling services that ask you to pay upfront fees. Just as foreclosures rise, so are scammers who take advantage of the desperation of homeowners to find ways to avoid losing their houses to foreclosures.

Another way to avoid government foreclosures is to talk to your lender. The easiest way for you to avoid foreclosure is to keep your mortgage account current. However, if this solution is not feasible, talk to your lender about the possibility of you qualifying for a loan workout.

Loan Workout Options

There are some loan workout options that you could explore with your lender to help you avoid government foreclosures.

One of these options is reinstating your loan. This means that your lender is willing to accept the total amount you owed for your property in a specified date. This option is accompanied by forbearance which means your lender may agree to suspend or reduce mortgage payments for a specified time and then workout another option to make your loan current.

Another option to explore to avoid government foreclosures is repayment. This means that your lender agrees for a regular monthly payment with additional portion of your due payment until such time that you have made your account current.