This post will be different from the other post in this blog, because it will address a worrying and growing problem in the USA, and that is Home Foreclosures.

It is estimated that nationwide approximately 1 out of 333 home owners are in foreclosure as of the first half of 2007. This puts Foreclosures up between 41 to 50 percent over the same period last year. These numbers translate to about 250,000 home owners that have lost their homes to foreclosure, and the numbers keep rising.

According to news reports there are about 2,000,000 mortgages that are at risk of foreclosure this year alone. This is an alarming number that will have negative affects on the US economy. With credit tightening, lenders are less likely to provide financing assistance to home owners that may be heading towards foreclosure.

Here are a few tips that can help you if you are heading towards or are already in foreclosure proceedings as outlined by the Department Of Housing and Urban Development (HUD).

1. Don’t ignore the problem.
 First things first, get a grasp of the situation and start analyzing what needs to be done to prevent the situation from becoming worse than it already is the further behind you become in your mortgage payments, the harder it will be to reinstate your loan and the grater the likelihood that you will lose your house in foreclosure.

2. Contact your lender as soon as you realize that you have a problem.
 A lender as options that can help borrowers through difficult financial times; remember lenders don’t want your house.

3. Open and respond to all mail from your lender.
 When you receive your first foreclosure notification read it, you will find good information about the options that are available to you that can help you prevent foreclosure.

Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.
 Every state is different when it comes to foreclosure laws and the various times it takes to foreclose on a residential property, therefore contact the State Government Housing Office.

Take out your mortgage loan documents and read them thoroughly so that you are aware of what your mortgage lender may do if you can’t make your payments.

5. Understand foreclosure prevention options.
 Visit www.fha.gov/foreclosure/index.cfm for valuable information on foreclosure prevention
 also called loss mitigation and the various foreclosure options available to you.

6. Contact a HUD-approved housing counselor.
 Free and very low cost housing counseling is available nationwide through the U.S. Department of Housing and Urban Development (HUD).

Housing counselors can help you understand foreclosure law and your options in preventing foreclosure, help you organize your finances and represent you in negotiations with your lender if you need this assistance.

You can find a HUD approved housing counselor near you or you can call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.
 You need to review your finances and determine where you can cut spending in order to make your mortgage payments. Look at optional expenses such as cable TV, club memberships, trips, entertainment expenses that you can live without. Also consider delaying payments on credit cards and other “unsecured” debt until you have paid your mortgage.

8. Use your assets.
 Consider the assets around you that you can sell for cash; do you need that second car, jewelry, etc… Can you get extra income from a second job…, these efforts will demonstrate to your mortgage lender provider that you are willing to make sacrifices to keep your home and the lender will intern be willing to work with you to help you keep your home.

9. Avoid foreclosure prevention companies.
 Do your best to avoid foreclosure prevention companies, these companies charge fees and this money can help you pay the mortgage instead. Also consider that some foreclosure prevention companies are not legitimate businesses and even those that are charge a hefty fee that may amount to two or three month’s mortgage payment for information that is available for free.

Contact your mortgage lender or HUD at (800) 569-4287 or TTY (800) 877-8339 for any information you may need on foreclosure solutions.

10. Don’t lose your house to foreclosure recovery scams!
 There are firms that will claim they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf.

Be extremely careful, you may well be signing over the title to your property and becoming a renter in your own home!

It is imperative that you never sign any legal document without reading and understanding all the terms and conditions of that document.

Get professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor to make sure that whats yours stays yours and to find out all the options that are available to you.

For more information on how to prevent a home foreclosure these two ebooks maybe helpful:

Foreclosure Free Zone
Provides you with the information that will help you stop foreclosure and save your credit.

Foreclosed Dreams - A Homeowners Guide To Foreclosure.
Foreclosed Dreams is for homeowners facing financial uncertainly nad who need help as a result of foreclosure.

Visit Foreclosure Info for more Foreclosure information

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