Have you ever received a letter in the mail from your bank threatening foreclosure because you've missed several mortgage payments? If so, you're probably all too familiar with the sinking feeling that accompanies it. When you're suddenly unable to keep up with your mortgage payments, a barrage of questions come to mind. What happens next? Will I really lose my home? How did this happen? Your first instinct might be to ignore the letter. But, ignoring the issue will simply make matters worse. Despite how common foreclosures have become, the process itself is still very unfamiliar and intimidating to most homeowners. But don't let the fear of losing your home stop you from asking the most important question of all: Can I stop this foreclosure and save my home?
When you first spoke with your lender about buying a home, you were no doubt put at ease by their willingness to work with you to find the right options to help get you into a home you could afford. But once homeowners receive that first letter about missed payments and possible foreclosure, they often lose sight of their lender's willingness to help. The bank suddenly becomes the bad guy as the homeowner avoids the lender's efforts to contact them.
But the bank wants to avoid foreclosure as much as you do, because the situation can affect its bottom line. According to the Joint Economic Committee, developing a plan to help you stay in your home costs about $1,500 compared to a whopping $227,000 combined cost to you (the homeowner), the lender and the government if your home goes into foreclosure [source: Joint Economic Committee]. So it's in the bank's best interest to help you stay in your home.
There are ways you can stop a foreclosure on your home. And, just as they helped you find the right options to afford your home in the beginning, your lender will work with you to find the best solution to help you stay in your home. If you're still apprehensive about the idea of foreclosure, read on to learn more about the process and why it's also in your best interest to save your home.