According to RealtyTrac, September of 2010 meant 1 in 371 houses were met with a foreclosure filing. According to Mortgage Fit, foreclosure means a hit to the credit score of 250 points. Bad credit can affect insurance rates, finding a job, and obtaining a rental lease. CBS Moneywatch reports that 2010 could result in 4 million foreclosures, but there are ways to help homeowners prevent a foreclosure from happening.
Ask to see the owner’s original loan documents and read through the fine print to know what the lender expects if behind on payments.
Encourage the homeowner to contact the lender and try to work out an arrangement to lower payments. It’s also in the lender’s best interest to avoid a foreclosure.
Visit Making a Home Afforable. This site is a result of a government financial stability plan put into place by Obama in 2009. The site offers several options for homeowners to avoid foreclosure and homeowners facing foreclosure are encouraged to see if they are eligible for any of the programs.
Set up an appointment for the homeowners to visit a local U.S. Department of Housing and Urban Development counselor. These counselors will help homeowners understand their legal rights and options.
Encourage the homeowners to see a financial counselor to analyze any possible areas to cut spending in the monthly budget.