People are losing their homes every day to foreclosure, despite the fact the real estate collapse was over a decade ago. Most often it’s due to the loss of employment, over spending, divorce, or even exorbitant medical bills.

Most Homeowners Are Devastated

 Other than the loss of a loved one, losing your home can be a devastating experience, leaving you with a whole host of emotions that can take a toll on your psyche. When faced with losing one’s home, it is common to go through a grieving period as one would losing a loved one, a marriage, or a career.

Starting over and rebuilding your life in a new place starts by taking control. Consider the likely chain of events. For what ever reason, you become a few months behind in your mortgage and, as a consequence the bank sends a letter stating their intent to foreclose. In most situations the circumstance that prevented you from making your payments hasn’t changed so foreclosure becomes likely. Ultimately, the lender takes your home. You are left feeling ashamed, guilty, and defeated.

rConsider these four steps that may overwhelm, on-one-hand, but could provide guidance on the other.

1. Denial The bank will communicate regularly, both by mail and phone. Most homeowners in default will ignore the calls and letters. Living with the hope that something miraculous will come along and change the situation. However, regular communication is always the best policy. It may slow the process providing more time and allowing the situation to change, such as a new job.
2. Negotiating Use bargaining skills, sometimes, depending on the extent of the situation, there may be a way to get back on track. There is a lot of effort put forth by lenders in executing a foreclosure. Banks will avoid it if possible. Consider consulting with an attorney to explore legal options. Ultimately, bankruptcy may be a viable option.
3. Depression As the foreclosure process unfolds, and you accept the reality that you’re likely losing your home, the stress may become excruciating. Feeling depressed is to be expected. If you do become depressed, seek the help of a mental health professional. Above all, understand that people come back from tragedy all the time. There is life after foreclosure too.
4. Acceptance Ultimately, one reaches a point where one accepts the foreclosure is real and must be dealt with. You begin looking for a new place to live, you consider fighting the foreclosure, perhaps you visit with a bankruptcy attorney. However, foreclosures takes time, and if you haven’t already done so, now is the time to act.

If Losing Your Home is Imminent

 You can feel like a victim of life’s circumstances, indeed you may be, but instead you can take control of your own destiny and self-define your future. Before the bank puts your home on the auction block selling to the highest bidder, consider selling your home first to a real estate redeveloper who will pay cash for your house. There are many benefits to working with a cash buyer – see our post on July 2. Sometimes, your mortgage can be made current and paid by the buyer while the redevelopment is underway, all the while improving your credit. Depending on the mortgage and property value, you will likely put cash in you pocket. Many redevelopment and investment companies also offer credit rehabilitation service to work on your behalf. For more information and the free ebook “The 10 Fastest Ways to Stop Foreclosure in Less Than 7 Days” visit: www.realtywithrichllc.com.