Learning About Government Foreclosure and How to Avoid it

Government foreclosure is something that no homeowner wants to have to deal with. If you had government foreclosure or real estate foreclosure as it is also known on your home, this would mean that your home was being taken away from you so that the house could be sold to make the money you are owing.

There are a few things that you want to make sure that you do if you start receiving government foreclosure notices in the mail, to ensure that you stay on good terms with the lender and stop them from going through with the foreclosure process.

Make Contact

The first thing that you should do, as soon as you start receiving mail or other contact from your lender relating to government foreclosure, is make contact with the company. You want to let them know that you are aware they are taking steps towards foreclosing on your home, and that you are willing and able to work with them to come to an agreement on the matter.

The last thing you want is for them to think that you are avoiding or ignoring them. This will not make the problem go away, and will most likely only make them work more quickly to get your home foreclosed.

Short Sale

Perhaps the most common strategy to avoid government foreclosure the short sale is when a lender agrees to accept less than the seller owes on the mortgage and the seller doesn’t have to bring money to closing to cover the difference.

Keep in mind that the difference between sale price and the amount that is owed is recorded as being income to the seller from the mortgage company and therefore the sellers must pay income tax on it.

Of course the best idea is to keep from having the foreclosure issue come about at all. In order to do this, you will need to pay all your mortgage payments on time, and always contact them back if they are ever trying to get a hold of you. It is important that you always keep your mortgage company abreast of your situation, and let them know if you are ever having hard times, going through money problems, because they will most likely be willing to come to some sort of an agreement with you.

They want you to pay your mortgage, and a good mortgage company will work with you if you are going through troubled times.