mitigation is a term in foreclosures that refers to the ability
of the owner of the asset to reduce his total loss, and attempt
to save his investment. In other words, it describes how to save
your home when you cannot pay your mortgage.
first step is to see the problem before it strikes. Some event will
precipitate the money shortage. Dont hope for it to go away.
Call and visit your lender immediately. The longer you wait, the
more money you will owe when you begin to negotiate.
work on the premise that your house will be a further cost to the
lender, if the lender invokes foreclosure. Therefore, the lender
doesnt want back the house; lenders want you to continue to
pay for it, because it is not easy to sell it. We are not in a sellers
youve communicated with the lenders, keep on top of the mail.
Respond to all correspondence immediately. This shows your commitment
to the process.
familiar with your mortgage documents, and get legal advice on how
the State law can protect you. This information is basically free.
it is critical that you prioritise your spending. If you are in
a crunch, you will have to cut back on the food bill. Whats
the sense of having a table spread with food, and no roof to shelter
the food from sun and rain?
expenses like cable TV, Internet and entertainment will have to
be eliminated. Credit card debt can be allowed to lag (yes, at a
high price!) because your home is your first priority.
people continue to pay for medical services that are available for
free. Forget about the stigma attached to health offices and lines,
and get in line-your home is your first priority.
what assets you have and what leverage you can get from them. A
safe full of expensive jewelry may be an inheritance-but what is
it without a home? Can you get cash from an insurance policy?
you get a second job? Jobs are aplenty now, and it makes little
sense hitting the roads at 4 pm. Look for evening jobs, because
you can certainly work another four hours, rather than sit in the
traffic. And when work is over, you beat the traffic!
addition, terms and conditions of all loans can be modified, for
example the duration and payments schedules can be changed.
rush to sign papers and agreements. Fully understand what you are
signing and the stages you must follow. When a market is a trouble,
there are more people trying to get you, than people trying to help
finally, the old rule of thumb: anything that looks too good to
be true is usually not true! So dont be gullible, and allow
yourself to be deceived. Dont pay money to people purporting
to be representatives of the lender. Deal directly within the offices-the
physical structure-of the lender.
home is your priority. It shelters you, it nurtures your family!