Foreclosure Steps: First Steps Prevent Foreclosure

Did you know that it costs the bank an average of $40,000 to foreclose on a single home?

So if a bank has a note for $300,000 and the house is now worth $240,000, it will actually cost the bank $100,000 to foreclose on the house. Knowing that, banks will sometimes help a struggling homeowner.

The reason I say sometimes is because bank bureaucracies are simply not equipped to deal with the shockingly high number of houses being turned upside down and homeowners with exploding adjustable-rate mortgages.

So if you are aggressive in the early stages of foreclosure, you have a better chance of getting the best deal with the bank.

Foreclosure prevention steps include:

1. Call your lender, right now! Early communication with the bench is the best offensive tactic you can take.

2. Don’t call billing, they don’t know what to do with you. Call the loss mitigation department – they’re trained to handle a distressed homeowner’s situation, and what’s more, they have the authority to cut you a deal.

3. Have all of your financial information ready for your lender. You see, the banks want all your money, if they can get it. So you’ll have to prove to them that you really can’t pay the amount owed, and they’ll get more money working with you than against you. Have all your documentation ready.

4. Be aware of all the options you have when working with the bank.

5. Know who to turn to if the bank is unwilling or unable to help.

6. Know what will happen if you can’t cure the debt. This means knowing what a foreclosure proceeding looks like. The Foreclosure Survival Guide gives you the best options for leaving your home if your bank won’t work with you and you can’t get outside assistance.