What do You do After the Foreclosure Notification Arrives?
- October 6, 2020
- By: Greenpath Financial Wellness
Sometimes life can take unexpected turns… and things can go in surprising directions when it comes to household finances.
That was the case for Victoria and Jeff.
Several unexpected financial situations were throwing off the couple’s budget, leading them to lean heavily on their credit cards, as well as to miss a few mortgage payments.
That wasn’t the only wrinkle. There were also unexpected changes in monthly income, and other unplanned bills to figure out.
When an official-looking pre-foreclosure notification letter arrived in the mail from their mortgage servicer, the road was beginning to get even bumpier then they had anticipated.
As Victoria and Jeff explain in the video, they had an opportunity.
These unexpected challenges put them on a path to reduce their financial stress – which would not only help them resolve their immediate needs but help them improve overall health and well-being.
YOU’RE NOT ALONE
GreenPath’s certified housing counselors are here to help. Our foreclosure prevention services are free. We can talk to your lender to explore options and even help you apply for specific programs.
What to Do After Receiving Foreclosure Notification
Outlined here are three key steps this young family took after the pre-foreclosure notification arrived.
- Take action: When life’s circumstances get heavy, it can be tempting to avoid taking action to help address the situation. Victoria and Jeff did take some needed time to regroup after receiving the pre-notification letter but then took action by getting informed, understanding what the process of foreclosure would entail, and researching resources to help them manage through. As Victoria notes in the video, they educated themselves on the process and found GreenPath’s national nonprofit resources.
- Team with a trusted resource: As Victoria and Jeff describe, trying to prevent home foreclosure was less stressful when teaming with a trusted resource. When they connected with GreenPath, a caring counselor discussed programs and options that would help them avoid foreclosure, and address other issues like the high credit card balances. GreenPath worked together with the couple to facilitate effective communication with the mortgage loan servicer to explore loan modification options. The couple notes that their counselor was friendly, approachable, and non-judgmental about their debt, and helped them structure a debt management plan to repay debt on a schedule that was realistic for them.
- Take steps to repair credit history: Through the ordeal, Victoria and Jeff learned first-hand about the importance of maintaining a good credit score. As they experienced, a few missteps in their credit history impacted both their scores, creating issues with everything from their purchasing power to a lender’s willingness to work with them on refinancing their car. The good news is that they teamed with GreenPath to better manage their outstanding debt, and took the needed steps to pay off $45,000 in credit card debt in just three years after signing up for a debt management plan. By working through the plan, the couple better managed their monthly expenses, while building back up their credit score.
Sharing the Lessons
Victoria and Jeff are kind to share their story. Falling behind on mortgage payments can happen for many reasons, from job losses and rising interest rates to overwhelming debt loads to name a few.
As they note in the video, the key for this couple was to understand options to get back on track.
If any parts of their story sounds familiar to you, let’s start a conversation.
A free foreclosure prevention counseling session will put you in contact with a trained and knowledgeable counselor who will review your circumstances, identify available options, and help you develop a comprehensive action plan in order to resolve your specific situation.