How to Evaluate Your Risk of Foreclosure

Are you wondering if foreclosure is in your future? Millions of homeowners face foreclosure. If you're feeling pressure or even frightened about your risk of foreclosure you aren't alone.

Has Your Financial Situation Changed?

If your situation has changed due to divorce, job loss, unforeseen medical expenses, or any other reason you may find yourself facing foreclosure even if you have not yet missed a payment.

Is Your Credit Card Debt Becoming Difficult to Manage?

Is it difficult for you to meet even the minimum credit card payment requirements? This is one of the first signs of the possibility of foreclosure.

Are You Having Trouble Meeting Your Monthly Expenses?

If you find yourself in a situation where the money coming in doesn't cover the money going out and you're unable to pay all your monthly bills, you are headed for financial failure.

Is It Becoming More Difficult to Make Your House Payment?

If each month you find it harder and harder to make your mortgage payment you are on a slippery slope to foreclosure. You should act sooner rather than later. Most people mistakenly think they have more time to get on top of their house payments than they actually do.

The Timeline for Foreclosure

The timeline for foreclosure varies from state to state so investigate the applicable rules where you live. A foreclosure timeline can provide you with a pretty good idea of how a foreclosure comes about.

The timeline should go something like this:

First Missed Payment - The lender contacts you by phone or by sending a letter. Don't delay. Talk to a housing counselor as soon as possible.

Second Missed Payment - Alarm bells are starting to go off at the lender's office. Your lender will begin calling you. Don't avoid these calls. Be upfront about your situation. You should use this opportunity to discuss a payment plan for avoiding foreclosure.

Third Missed Payment - You will receive a letter from the lender both listing the amount you are delinquent and informing you that you have 30 days to bring your mortgage to current.

Forth Missed Payment
- By now you are close to the end of the 30 day period, and if you have not brought your mortgage up to date, you'll hear from the lender's attorneys.

Public Trustee's Sale - The attorney schedules a sale, which is the official foreclosure day. A notice will be taped to your door, and you will be sent a letter with the details. The time from the demand notice to the sale varies from state to sate. You can still avoid foreclosure since you have until the sale date to work something out with the lender.

Foreclosure can often be avoided simply by talking with your lender and working out an alternative payment plan. Avoiding your financial situation does not avoid foreclosure.