What can I do if my lender has threatened to foreclose?

What to do if your Lender has Threatened to Foreclose

If you find yourself unable to make your house payments, eventually you will receive a written notice that your lender has initiated foreclosure proceedings to kick you out of your property. Many people have little knowledge, if any, as to how they should deal with or respond to a notice of foreclosure. In this article we hope to educate you about what should be done if your lender forecloses.

You are not alone, and there are thousands of other Florida families facing a similar situation. While this will certainly cause extra stress, try to avoid panicking and keep a positive face in front of your family. You have to take charge of the situation. Don’t get depressed about the harassing phone calls from lenders. The truth is, calling and bothering you about paying them is actually the only legal recourse the lender has by law. They call and harass because they have no other choice, other than actually foreclosing.

The worst thing that you can possibly do is to ignore your problem. If you ignore the issue or do nothing, your lender will certainly come and repossess the property eventually. The fact is your situation will not improve and go away on its own. The lender or bank has the power and will foreclose on you unless you address this issue properly. The following items will help readers who are facing foreclosure to get a handle on the situation:

• Inventory - figure out exactly where you are in the foreclosure process. 
• Response – If you receive a letter from the court notifying you of a foreclosure action, you must respond within the appropriate time span. Often, this will be ~20 days. Failure to respond will leave you with no recourse or defense when you go to court.
• Legal Advice - If you are facing foreclosure, chances are you are short on cash. Let me be clear. Even if you don’t think you can't afford it, you must get good legal foreclosure advice in a situation like this. The faster you can speak to a competent attorney to advise you regarding the case, the better. Find out how to protect yourself and understand what your rights and obligations are under the law.
• Borrow from Friends / Family- Most Americans are extremely uncomfortable talking about their finances, or the lack thereof. No matter how it may make you feel, you must try. It is far less embarrassing to borrow money than it is to be removed from your home by court order. There is less shame in asking for help from friends and family members if you are struggling financially.