Don’t Let This Happen To You

The parents of American swimmer Ryan Lochte are facing foreclosure on their home. Although they owe almost $250,000 they are asking for the case to be dismissed. Here are some tips for you to avoid having your own home foreclosed upon.

Make The Payment Each Month
Always send in your payment on time. Strategic defaults may backfire on you. A strategic default is when a borrower stops making payments on their home in an attempt to get the bank to modify their loan. However, this may only make it more likely that you home gets foreclosed upon.

Divorce Doesn’t Impact Your Mortgage Obligation
In the case of the Lochte’s, the failure to keep current on their mortgage most likely stems from their divorce. In most divorce cases, an agreement is drawn up to determine who will make the payments. What you should remember is that you are responsible for the mortgage as long as your name on it. If no one is making payments, you will be held liable even if your spouse agrees to pay.

Hire A Lawyer
If you do get a foreclosure notice, hire a lawyer immediately. Your attorney will go over the foreclosure documents to ensure that they are legal and valid. If not, your lawyer will pursue a dismissal of your case. At the very worst, an attorney can help delay the proceedings long enough to allow you to pursue other options. Instead of fighting you in court, the bank may eventually allow for a short sale or some other loan modification.

Making your payment on time each month is the only way to ensure that you don’t get foreclosed upon. If you do fall behind on your payments, make sure to communicate with your lender. This can help you avoid any actions that may force you to leave your home while also ruining your credit score.