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Houses in Foreclosure

This post brought to you by Fannie Mae. All opinions are 100% mine.

House ForeclosureJust before we moved into the new house, the owners of the house across the street suddenly moved out. Notices went up on the door. A few weeks later, a for sale sign went up in the yard. Almost everywhere in America you see foreclosure after foreclosure in many neighborhoods.

Having seen a distant relative lose a home a few decades ago and a few friends go through the same trial in the past year, I have a remote idea of how heart wrenching it must be to lose a home you love.

Unlike the current trend, however, I don’t blame “greedy” banks for the problem. People lose homes when they can’t pay the mortgage. That’s how the deal works. It’s exactly what all of us sign up for when we complete the closing documents. You want a house, but don’t have the money. You want the bank to give you the money. You agree that if they give you the money, you’ll make monthly payments. The house is the collateral. If one side or the other doesn’t keep up their end of the deal, there is a breech of contract — and there are consequences.

That said, no one wants to lose a home. And if you are having trouble making your mortgage payments, if you’re overwhelmed with financial issues, there are resources to help you. KnowYourOptions.com is a fact-filled website that offers hope and support in such a difficult time. The site has information on staying in your home, such as:

  • Refinance
  • Repayment plan
  • Forbearance
  • Modification
  • Deed-for-lease

It has information on leaving your home, such as:

  • Short sale
  • Deed-in-lieu

Since (sadly) many people will prey on those who are most desperate and vulnerable, it has an entire section on avoiding scams. It even helps you prepare to talk to your mortgage lender.

If you’re having trouble with your mortgage payments, don’t hide from them. You’re much more likely to have a positive outcome if you face them head on. Know Your Options can give you needed information to move forward.

Have you faced foreclosure or had mortgage payment problems? What did you do? What resources did you use to help?

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{ 4 comments… add one }
  • connor January 31, 2011, 3:54 pm

    Unfortunately, this info is needed by one of my best friends. I’ll send him over to read it. Thanks. 🙁

  • Alison Moore Smith February 5, 2011, 3:22 am

    So sorry to hear that, connor. I do hope he can use the info.

  • Joseph July 4, 2011, 8:10 am

    Nice information Fannie. I have always wondered if i am able to find some good resources which can make someone avoid foreclosure.

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