With the economic down turn during the last decade, many Tennessee families are barely making ends meet. With even the slightest set back, some are unable to pay all of their monthly obligations on time. If this becomes a pattern — especially with a family’s mortgage — people can risk their financial security. If people fall behind on their mortgage they can, in some cases, risk losing their home in foreclosure.
Foreclosure is the legal process that a lender uses to take a person’s property to satisfy the debt the person owes. There are many rules and regulations that lenders in Tennessee must follow in order to legally foreclose on a person’s home. However, there are also ways for Tennessee homeowners to avoid foreclosure.
According to the Tennessee Housing Development Agency, people facing foreclosure have a few options available to them. They should, therefore, address the situation as soon as possible instead of ignoring it. First, the agency suggests that people gather information about their lender and their mortgage. People should get informed and see if their mortgage payments are fixed or if they vary based on certain factors.
The agency also suggests that people speak with their lenders before they miss a payment. In general, lending institutions may have more options available to people before they are in default. If people ignore the situation instead, they could lose these options and face additional fees and penalties. When talking to lenders, people should make sure to keep records of the calls and what was said. People are also advised to stay in their home as they seek assistance.
In some cases, an attorney can also help those facing foreclosure. An attorney can help people with financial challenges understand all their legal options including the right to file for bankruptcy.