Homeowners Should Save Themselves, Stop Waiting
Posted on November 13, 2008
Filed Under Foreclosures |
While Congress debates a bailout plan to help businesses and citizens failing in the current economic and credit crisis, many people in danger of losing their homes to foreclosure stay glued to the news waiting to find out if they will be saved along with their big bank lenders. So far Congress has been unable to reach an agreement even though their decision is urgent for those barely onto their homes.
There are two options that any help coming from the federal government can take. They can bailout the big banks and mortgage lenders they feel are “too big to fail” or they can bailout the everyday citizens. Either way, they have to hold out hope that the help will trickle up or down to the other end. Or, they can strike a compromise and bailout a few of the big banks along with a few of the citizens and hope it evens out.
It is unclear yet what kind of agreement will be made in Washington, but for homeowners hoping to find a way to save their homes from foreclosure, waiting for Congress to agree upon a help package, pass it, and then for it to be effectively distributed down to them is not in their best interest. A lot time could be wasted waiting for help that may never come their way. There are things struggling homeowners can do to perhaps save themselves, instead of waiting for the government to come to their aid.
Think of the biggest emergencies that have faced everyday Americans and the lack of appropriate speed the government has responded. People behind on their mortgage payments cannot afford to wait for Congress to make a decision and come to save them. Whenever the bailout package is finally approved, it will be too late for many struggling homeowners.
A homeowner’s first step to self-help in a foreclosure situation is to ask for help—but not from Congress. Just as real estate agents help homeowners find and get into their homes, there are nonprofit agencies that can help them stay in their homes. These agencies are available in every state and can offer homeowners free or low cost housing and financial counseling. Many of these nonprofit groups offer mortgage delinquency services which are best tapped into when you are 30 or 60 days behind on your payments, rather than after a sheriff has knocked on the door with an eviction notice.
These counseling services will help you negotiate with your lender to come to an agreement that works better for you both than foreclosure procedures. The earlier you get them involved in saving your home, the more options they will have to work things in your favor.
Struggling homeowners are often told to contact their lenders on their own to work out a better plan for payment, but many counselors are now advising against this. There are cases where the lenders talk homeowners into signing papers that actually work against them, instead of for them. Other times the loss mitigation departments that are supposed to help struggling homeowners are much less than helpful.