KTVN Channel 2 - Reno Tahoe News Weather, Video - How You Can Prevent Home Foreclosure
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Stacks and stacks of cases pile up at the Washoe County Senior Law Project. Each file represents another family fearing foreclosure. Ernest Nielsen says, "80 to 90% of cases, we are able to do something to resolve them."
Neilsen says just like you, lenders don't want you to lose your home either. So first things first - contact your lender's loss mitigation department. Nielsen says they might lower your interest rate, reduce your principal, or turn your adjustable rate mortgage into an extended fixed loan. "The lenders are very interested in resolving the mortgage because it's to their best interest."
Next - simplify your life. Nilesen says, "bills for three cars that cost $1,200 bucks? Those are clearly things people shouldn't be spending money on."
So sell that extra car, cancel your gym membership, or spend less money at the grocery store. Homeowner J.d. Fazio says, "we just eliminate every potential expense that we felt was unecessary."
John Simonetti did the same, "we're just cutting back, less driving, less groceries, not going out as much."
But, if you've already missed a few payments, check with the Washoe County Recorder's Office for notice of default. Since lenders are so busy these days, it could take months before you hear from them.
Nielsen has seen some pretty extended cases, "got a person living in a house for eight months; no payment for eight months and still no notice of sale that's been recorded."
But the key to keeping your house key, is to take action now before problems pile up.
Remember, legitimate foreclosure advice is all free. If someone tries to charge you, you are being scammed.
The Feds promised billions of dollars will be given to cities to help with this problem.. So far, the cities of Reno and Sparks say they've requested the money and won't find out how much they'll get or where it will go until the end of this month.
