Categories: Mortgage, Home Loan, Foreclosure, Predatory Lender

Despite the emerging rate of foreclosures, there are several ways to avoid the risk these home defaults:

1) Check for legitimacy. Prior to accepting a mortgage or home loan, review the information detailed on the Federal Deposit Insurance Corporation (FDIC) to determine whether a lender is reputable or a predatory one.

2) Seek Help. Failure to make mortgage payments carries many legal, financial and credit penalties. To prevent foreclosure seek help immediately to avoid the problem from growing into a serious crisis.

3) Weigh your alternatives. Many lenders offer a few options for consumers or borrowers to make good on their mortgage. Forbearance—(deferring payment for a short span), reinstatement—(a verbal promise to reinstate payments) selling your home and a myriad of other options may help you prevent foreclosure.

4) Consumer beware. Consumers should be leery of any person or entity who vows to rectify your foreclosure issues. Be sure to obtain a written agreement and to obtain a second opinion from a trusted professional such as a lawyer or loan counselor.

Does your city have a high incidence rate of foreclosures?