Steer Clear of Foreclosure

Did you ever have someone tell you that you can drive a car even when the gas gauge is on “E” because “E” doesn’t really mean that there is absolutely no gas in the car? Have you ever gotten a call from one of those people because they attempted to coast on “E” and found that their car manufacturer was unaware of this rule?

Well, many homeowners are acting as if they can coast on “E” and not lose their homes. Sadly this is not the case. Nevertheless, a Freddie Mac study showed that 20% of the people surveyed didn’t think they’d lose their homes if they missed three or more mortgage payments. Just as some people will tell you that a car doesn’t register that it is on “E” because there are hidden reserves, some homeowners think thought that it would take a while for a lender to notice and act upon missed payments.

While many lenders certainly want to avoid foreclosures, this does not mean that they can ignore non-payment. If you are in danger of missing payments, contact your lender as soon as possible. Don’t wait until it is too late. There are steps you can take to avoid foreclosure if you don’t ignore the problem. I'll get into some of the options in more detail next week.

When it comes to your home loan, you are in the driver’s seat so take control and steer the course to avoid foreclosure.