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How to Address a Foreclosure

August 7, 2014 by · Leave a Comment 

If you’ve ever been on the receiving side of a delinquent notice, you know the overwhelming feeling to shut down and ignore the world around you. Inability to make one’s bills is one of the most difficult side-effects of this downswing in the economy. The reality is that job loss and wage stagnation is occurring across the board, so know that you’re not alone!

The problem isn’t going to go away on its own, but that shouldn’t invalidate your years of hard work. Facing the reality of foreclosure is unimaginable, but you can begin to think clearly about your situation once you’ve gotten over your initial shock. The first thing you need to do is read the foreclosure notice in its entirety.

State Foreclosure Laws

Your next step is to research the laws in your state, to see what legal protections you have during this process. In Michigan, for instance, lenders must contact home owners regarding their delinquent payments at least 3 times before they are 90 days late. Where many people goof is by ignoring these notices and phone calls. Try to remember that this problem won’t go away, and realize that your lender often doesn’t want you in default.

A default for your lender would mean property on its books, which amounts to a loss. If you act early, you can try to negotiate your way out of the problem, and arrange for a payment plan to get caught up. The flip side is that not every lender is accommodating to your situation.

When Foreclosure is In-Process

If the process has already started, contact your lender to see what can be done to save the home or your credit. Lenders may be open to short sales so that they take a smaller loss. This leaves you free to walk away from the foreclosure and into something else without the ding to your credit.


Realty ONE Group is One of INC 500’s Fastest Growing Companies Again! from RealtyONEGroupTV on Vimeo.

:: Kuba Jewgieniew is the CEO and founder of Realty ONE Group, a lifestyle brand focused on agents and buyers. Kuba Jewgieniew was a stock broker who now manages one of Inc. Magazine’s Fastest Growing Firms.

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