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Home Ownership Preparation :: Foreclosure Questions
Foreclosure Questions:
Questions and Answers to Help You Avoid Foreclosure
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Foreclosure questions are important to ask, even if you’re just thinking about buying your first home.
By understanding how foreclosure works, how it can impact your credit and what it means in the long term, you can be better prepared to avoid it.
For some answers to frequently asked foreclosure questions and tips on how to avoid foreclosure before you even put down your first offer, please keep reading.
How do I know how much home I can afford?
The simplest way to avoid foreclosure is to ask yourself the most important of any foreclosure questions – “How much home can I afford?”
What you can afford will depend on your monthly income.
Base this on a low estimate of your actual monthly income, now is not the time to hope that your hours will increase, your freelance side income will go up or you’ll be able to continue working two jobs forever. Now is the time to be realistic.
GinnieMae offers a simple online calculator that helps prospective homeowners figure out how much they can afford to spend. You can find it on their website at http://www.ginniemae.gov/2_prequal/intro_questions.asp?Section=YPTH.
What are my rights as a borrower?
One of the best ways to avoid foreclosure or predatory lending is to know your rights as a borrower before you begin to negotiate a mortgage.
Remember, you have the right to shop for a loan, you have the right to be informed about the total cost of your loan, you have the right to ask questions and you have the right to know how much a mortgage broker is being paid to negotiate a loan on your behalf.
To learn more about your rights in the event of a possible foreclosure or financial troubles, visit the HUD (US Department of Housing and Urban Development) website at http://hud.gov.
How many payments must I miss before I am foreclosed upon?
This is one of the most common foreclosure questions and it depends on your lender, your mortgage agreement and the laws of your state.
Typically though, a lender will contact you by phone or letter after one missed payment. After 3 months, you will usually enter a delinquent period and be required to make any and all missed payments.
This is the start of the foreclosure process.
If I do find myself unable to make my payments, what should I do?
Don’t ignore the problem. Face it head on, talk to your lender and consult a housing counselor (again, contact HUD for recommended housing counselors). Ignoring the problem will only make it worse.
Hopefully though, you will have researched all your foreclosure questions, prepared yourself and purchased a home within your means, therefore protecting yourself from the potential of foreclosure.
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Home-Ownership-Preparation.com :: Foreclosure Questions