With today and tomorrow's economic and possible medical epidemic, everyone is at a cross roads in 2020. The possibility of a foreclosure crisis and is still looming within the COVID-19 economy. One thing is for sure is that banking institutions are not, and will for the most part never be in the business of foreclosing one's home. In the end, the banking institutions lose a lot of time and money when it comes to initiating the home foreclosure process. Remember that home foreclosures processes are different depending on the state that one resides in. For example, In Virginia, most residential foreclosures are under a power of sale in a deed of trust—that is, the process is nonjudicial. The foreclosing party must serve you a notice of sale personally, or by mail no less than 14 days before the sale. And another example the foreclosure process in Texas is non-judicial foreclosure, which means the lender can foreclose without going to court so long as the deed of trust contains a power of sale clause. Non-judicial foreclosure is most common with purchase money loans as well as rate-and-term refinances. In some states, it is much easier to implement the foreclosure process, and in other states not so much. No here are a few ways one and try to avoid the whole foreclosure process in order to save their home. One step is definitely to communicate with your lender because your lender will do their best to present you with all of the best options humanly possible to keep you in your home, or at least be able to sell your home. Having a foreclosure on your record isn’t in anyone's best option, especially nowadays.
Another good step one may want to look into is work with the Making Home Affordable (MHA) program which they go out of their way to provide free counselors for advice and assistance with keeping you in your home or getting out safely. Visit the MHA website to read about the options and what you’ll need to prepare. MHA has a hotline you can call anytime: 1-888-995-HOPE (1-888-995-4673) and TTY users should call 1-877-304-9709. A variety of states offer specific programs that one can utilize during this crisis, for example, one’s state’s housing agency may have a foreclosure avoidance program. If you’re in a position where you have a Federal Housing Authority (FHA) load then you will want to contact the FHA National Servicing Center at 1-877-622-8525. As always, please contact a financial professional when it comes to these matters because obtaining information is one thing, and implementing is a completely different thing.
