FORECLOSURES and MORTGAGES
9 APRIL 2018
Five things to do if you are facing a foreclosure:
It is a difficult topic to talk about. Embarrassment. Guilt. Shame. You don’t want to talk to anyone about the fact that you’re behind in your mortgage and may lose your house. In fact, talking about it is the last thing you want to do. But talking is critical to creating a positive outcome. Communicate with your partner. Be open. Be honest. Be patient. Talk about the facts of your situation. Get to the nitty gritty of your finances. Stick to the facts and don’t blame. There is no room for blame. Communicate with your lender early and often. If you haven’t already, talk to a real estate agent. You’ll want to know what your options are and finding a real estate agent who has training in short sales and foreclosures is going to be your best bet. And lastly, you’ll want to communicate with a HUD counselor. HUD is the Department of Housing and Urban Development and it has counselors that offer guidance free of charge. They can help walk you through your options and navigate this confusing time.
- Make a pledge to turn your crisis into an opportunity.
Maybe you’re in foreclosure now as you read this. You might be feeling that tightening in your chest. The stress makes it hard for you to breathe. They weigh so heavily. They might be making it hard for you to get out of bed. Hard to be a normal person. I get it. Completely. The most difficult aspect is the feeling that there is nothing you can do. But there is something huge you can start doing now. You can take care of you. Take care of each other. Commit to turning your foreclosure story into a triumph over adversity story worthy of a Hollywood epic picture.
Learn the meaning of the bankruptcy language: Forbearance. Loan Modification. Default. Short Sale. Become the bankruptcy expert you never thought you would have to be.
- Make your house work for you
Clean out and rent out part of the house through Zillow or place an ad on your local social media. Be sure to check your local zoning laws that regulate residential rentals.
- Have a backup plan.
Consider being a caretaker of a property or live in foreclosed property in exchange for maintaining the property. (As crazy as that might seem.) Travel the country in a recreational vehicle. I met a client in my financial coaching business once who lived rent-free in exchange for managing an apartment building. The main thing to keep in mind is be educated and prepared to make a change that could open up many opportunities in your life.
Lighthouse Financial Coaching is an Austin-based company dedicated to helping regular families and individuals become organized with personal finance and begin to win with money and move forward to achieve their financial dreams and goals. Schedule your free introductory consultation today.
Phone: (512) 971-6739