Patrician Jennings is in a fix. The sword of foreclosure is hanging over her head – about to fall. Unemployed she is late by three months on her mortgage installments for her house in Pontiac, Michigan. Desperate she hung a signboard “For Sale by Owner”. Then did the next wise thing – attended a seminar organized by Federal Reserve Bank of Chicago at Detroit.

At the meeting the Resource Development Coordinator for Oakland Livingston Human Service Agency advised homeowners that in a situation like Jennings the first thing is to chalk out an emergency budget cutting out on anything but the bare essentials. Next is to augment income. The main priority and target should be the determination that the home would not be sacrificed.

For those with a student loan there is the facility of applying for a deferment citing reasons of economic hardship and unemployment. Payments then might be suspended for a limited time giving the owner breathing time. For particulars click on salliemae.com.. The quicker one act the easier it will be stall foreclosure.

The next alternative will be to change the mortgage lender without delay. Never loose your cool. Be calm and pleasant while contacting personnel in the loss-mitigation department and not the collection section.

Seek an appointment with a housing counselor who has been approved by the US department of Housing and Urban Development. You can get a brochure that explains ways out of the foreclosure mess. Avoid foreclosure scams. Never give your signature to a service that charges upfront for fixing the damage.

In the case of the owner negotiating the sale of the house it is advisable to check out on the prospective buyer. Wolves in grandmother’s clothes come prowling around to make a fast buck. Never allow yourself to be rushed by smart talk. The usual ploy is for the crook to offer collection of rent for sometime and not take mortgage payments. Later the lender has to foreclose. The point to bear in mind is that by signing over the deed to another does not necessarily absolve you from the obligation of repaying the loan.

For those above 62 who have equity on their property but are facing problems with meeting up their bills the option is to find out about reversing mortgages. The site also gives invaluable advice about avoiding predatory lending traps.

Via

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