I Have Received Notice Of Default, What Should I Do

You are thinking that you have received notice of default and what should I do? Am I too late? Is there anyway to avoid foreclosure?

According to RealtyTrac’s, 15% increase in foreclosure notices in the first six months of 2009 as compared to the first six months of last year 2008. The report also shows that 1 in 84 homes received at least one foreclosure notice for the first six months of this year, so if you look at the number, it is in millions (1,528,364 US homeowners received the foreclosure notices), out of this California itself received 391,611 homeowners received at least one foreclosure notice, one of the highest number of foreclosures. If you would like to view for other states, click here “Foreclosure Report” for other states.

You have bought your house with a good intension to keep the house and pay the monthly payment on time but with a sudden change in your financial problems, you cannot afford the payment at this time. Most of the homeowners are not doing anything or just walking away from the house when they face this problem. If you just ignore or walk away from the house, it will not resolve your problems.

Even if you just ignored in the beginning and didn’t contact the lender or anyone for help and you have received the notice of default, now you are thinking what to do, well, you still have options to avoid from foreclosure, YES! That’s right! You have options to save from foreclosure.

One of the option is to contact lender for loan modification. You can still contact the lender for loan modification if you have job and think your income can support the payment and also show that you have financial hardship. It’s free you don’t have to give any fees to anyone for this service.

The other option is to do short sale to avoid foreclosure from your credit history. You can check this article to know more foreclosure vs short sale. For short sale, contact the trained and experienced realtor who knows how to handle short sale. You need to check the agents whether they had closed any short sale, not just listed. Also check whether they have any certification and training in short sale and which all banks they have negotiated with for short sales. Don’t just work with your friends, just because he is your friend, at this time, you need an experienced agent who can protect you from foreclosure if possible.

So, if you have received notice of default then don’t just sit there by doing nothing, be proactive and contact your lender for loan modification or experienced agent for short sale. Always consult your CPA or attorney for any tax ramifications questions. Don’t think that you cannot do anything at this time!! You Can! If you take action NOW!