Preparing for Default, Part 2: Expect Disruptions and Obstacles
Disclaimer: Christine Springer and Desert Edge Legal Services LLC are not lawyers and are prohibited from giving you legal advice. The information on this page and our coaching program is not intended to be legal advice. Please consult with an attorney if you have questions about legal issues in your individual situation.
Welcome back to my blog! This is the second post in a series for homeowners on preparing for default and possible foreclosure. Yesterday was Part 1 plus three strategies you can use right now to help you through the foreclosure process, or really, just about any situation in your life.
If I sound like I've lost my marbles, I get it! This isn't an easy time for anyone. I went through this during the Great Recession and learned a lot, both from my own situation and from helping homeowners.
This does not have to be a devastating process, and the way you avoid that is by owning the situation, accepting that it's happening and taking action.
This is part 2 of my series on preparing for default and possible foreclosure.
My advice today is: Plan ahead. PLAN AHEAD! Plan ahead!
Why? You are going to need enough time to get everything done.
I guarantee that there will be disruptions and obstacles. Expect them, and you won't be caught off guard. Your first option might not work out, something falls through or you just need to find a work around. Most of these issues are made easier when you have enough time to work things out.
There are usually several issues that come up with the foreclosure process, and sometimes you have to work on multiple things at once. You will probably need time to narrow down your options, do your research and consult with your family and other important people.
You may also need time to stock your war chest with cash. That might mean you need more time to earn enough money by increasing hours at work, cutting back on things at home, and talking to your family.
Lawyers are not miracle workers. They also need time to draft documents, get things filed, get people served, get a temporary restraining order to stop your sale, and other similar things, depending on which approach you are taking.
If you file bankruptcy, it's important to file before any sale date and it can take some time to get your financial documents and other information together before you can file. You'll need to take a credit counseling course, run credit reports and all sorts of other things before the bankruptcy petition can be prepared and filed.
You will also need to speak with your spouse and your family. It’s important to be compassionate with the people under your roof, especially if you are the decision maker. This is the time to talk about what's going on, and to make sure everyone under your roof feels heard, supported and has time to process what might happen.
This is not the time to stuff emotions, turn into a tyrant and take it personal that your spouse is angry and your kids are upset.
I’m not a parent or a parenting expert, but I would have liked my parents to discuss financial things with me. If your kids are old enough to understand, consider including them in a family meeting discussion so you can get their buy in and cooperation.
It might also make sense to go to a counselor to get support. You don’t want your kids to hate you later for not taking their perspective into account. Changing schools and giving up soccer might seem like small things, but it a child, those are a big deal.
For the most part, homeowners almost always just wanted to buy time during this process. You'll probably need it.
I'm here to support you! Please check out my foreclosure defense coaching page for more information on my foreclosure defense coaching program. When you enroll for at least four months, the property analytics research and report are free. This is my signature service and a $2K value. You'll know exactly what's wrong with your loan before you hire an attorney, which will empower you to make the best decision possible for your situation.