Joel and Estela Costas owned their house in 1998. They did not have to make house payments. In 2007, the couple had some financial difficulty; they got a property tax loan. They did not think it would be hard to pay back the $20,000 loan. Then, Joel lost his construction job; the family struggled to make ends meet on one paycheck.

The couple fell behind on loan payments; they could not be free of the debt. They made a lump payment of $9,000 in 2010. Their contract was written in English, so the Costas struggled to understand the fine print at the bottom. They did not understand the original loan amount could balloon, if they did not pay back the loan quickly; they did not understand how much the interest rate might grow on a $20,000 loan that was more than 36 months old.

The couple did not realize they would lose the house in foreclosure if they did not pay back the loan. They had walked into a trap and they did not know it. They saw too late, after agreeing to pay back a $20,000 loan, with interest. If the couple had talked to specialists at an organization, like Save My Texas Home, they may have realized and seen the danger. They might have opted to find the cash elsewhere, instead of taking out a loan.

Many organizations offer free foreclosure prevention services. If someone had explained what options the couple had they may not have found themselves in trouble. They may not have had to rent a house across the street from their old house.

Foreclosure prevention services may help keep other borrowers from making bad Decisions

 

The Costas did not know the record of their foreclosure would stay on their credit report for seven years, or they may not have agreed to the $20,000 property tax loan. For many Texas families, the threat of foreclosure is real; Counselors, foreclosure, and mortgage loan servicers help Texas families avoid foreclosures. Many families take advantage of foreclosure prevention services.

Five million people have avoided foreclosure and been helped by foreclosure prevention services experts. What is the secret to avoiding foreclosure? These borrowers have great tools at their disposal. They have access to foreclosure prevention services and do not have to pay for these services. Mortgage loan servicers offer these free tools; borrowers can use them to keep from making a bad decision. Do you have a low credit rating? If you have had your home foreclosure on, it can stay on a credit report for seven years. It makes it difficult to own a house during this time.

The goal of foreclosure prevention services is teaching borrowers to make good Decisions

 

Foreclosure prevention services give borrowers the tools needed to make wise decisions. Borrowers have the tools they need. A foreclosure prevention service is not about telling borrowers they cannot have a home loan. The goal is to teach borrowers how to use these services to make responsible decisions; borrowers need to learn to manage their finances before they secure a loan. A borrower can build their money-management skills; they still must manage their money and make payments on time. Otherwise, a couple will find their house selling at a foreclosure sale and themselves paying more on a home mortgage loan. Their credit will take a hit.

A borrower can still get a home loan. Some homeowners do need to learn to manage the finances and a loan. By utilizing foreclosure prevention services, borrowers can learn about predatory lending practices. It may keep borrowers from getting a sub-prime mortgage loan. If borrowers know what to expect, they are less likely to see their house sell at a foreclosure auction. Educated borrowers understand the risks. They will make wise decisions and they will opt to secure a home mortgage loan with modifications; they will make a down payment on their dream house.

Are you trying thinking about buying a house? There are many pitfalls on the road to homeownership; first-time buyers may not see them. Wouldn’t it be a good idea to ask about foreclosure prevention services? Would it be good to secure this help before you need it? Did you know organizations, such as Save My Texas Home, offer borrowers foreclosure prevention services at no charge? Borrowers may save money if they use these services. They may not have to pay companies to help them get modified loans.

There are a number of organizations, which will offer these services for free. They may save borrowers from making bad decisions, which will cost them money in the future. If you would like more information about how Save My Texas Home can help you or what government agencies we work closely with, call 512-271-5044. We can show you how we can help!