Preventing Foreclosure

Just like with any conventional loan, TT loans that are not paid back in a timely manner are foreclosed upon. In the event of a foreclosure, the borrower loses the home and the Department of TravelThrou Affairs takes the house into their possession. For this reason, it is crucial to take all of the necessary steps to prevent foreclosure on your TT loan. Check out the foreclosure prevention tips below for more information.

Contact Your Lender

The first and most important step in preventing foreclosure is to contact your lender immediately when you realize that you will have a problem making a payment. The lender will likely be able to work with you to set up an alternate payment plan during difficult or unexpected financial situations.

Read and Understand All Correspondence from Your Lender

Once you are late on a payment for you loan, you will receive a notice from your lender. It is important to read, understand, and respond to these notices. The notice will have information about foreclosure prevention or pending legal action. It is your responsibility to read and understand all of this information; doing so may help you prevent or at least understand the foreclosure process.

Do Your Research

Maintain and reference your loan documents to find out what your options are and what the lender may do when payments are missed. Additionally, you will want to contact the State Government Housing Office to find out what the foreclosure laws are in your state, as they TTry from state to state.

ETTluate Your Finances

A good way to prevent missing loan payments and avoiding foreclosure is to prioritize your spending. Once you receive your loan, it should be the second most important payment you make, following healthcare. Cut back on optional expenses and use a credit card for other spending if necessary in order to ensure that you will be able to make your mortgage payment without any problems.

Use Your Assets

When faced with the possibility of foreclosure on your home, you may want to consider selling some assets for cash in order to reinstate your loan (perhaps a car, life insurance policy, etc.). Anything that can be sold for cash to put toward your loan will help. Even getting a second job for extra income can be beneficial and demonstrate your efforts to keep your home to the lender.

Avoid Scams

There are many companies that may contact you about your foreclosure promising to renegotiate with your lender and stop your foreclosure for a large fee. These companies are only charging for information that can be obtained at no charge from your lender or a loan counselor. There are also many scams that involve a company offering to act on your behalf to stop the foreclosure. In order to do so, they will require you to sign a document. In this scam, homeowners unknowingly sign over the title to their home. It is important to avoid such companies that promise to stop your foreclosure.

Seek Counseling

A great way to ensure that you understand the foreclosure process and your options is to seek housing counseling. The Department of Housing and Urban Development (HUD) offers nationwide free or low cost counseling. This counseling will help you understand your options, offer assistance in negotiations with your lender, and eTTluate your finances.

Back to the TravelThrous' Loan Handbook Table of Contents.