Home foreclosures are an unfortunate reality for many Americans. In fact, a report from the Federal Deposit Insurance Corporation found that one out of every 200 houses in the United States will face foreclosure at one point or another. A quarter of a million families will face foreclosure every three months in this country.
There are various actions a homeowner can take to prevent foreclosure, such as filing for bankruptcy. However, banks make mistakes all the time. You may think you are in the clear only to still have your bank breathing down your neck ready to foreclose. In instances of a looming wrongful foreclosure, there are steps you can take to protect your property.
Provide pertinent documentation
When you go through bankruptcy, you definitely want to hang onto all relevant documents. You want paperwork that proves you are presently going through bankruptcy and that you have made all essential payments in a timely manner. With the right paperwork, you are sure to have an easier time proving to your bank that a foreclosure is a mistake.
Contact the lender
In many instances, you simply need to contact your lender to inform them of the misunderstanding. Banks are immense institutions, and sometimes, a piece of paper goes missing, or someone does not communicate adequately. Having all the right paperwork handy often makes the process easier, and one phone call may save you a lot of stress.
Contact an attorney
In the event you try contacting your lender on your own to no avail, then it is good to bring in legal representation. An attorney can take the lender to a courtroom, but in many cases, that will not be necessary. Once an attorney becomes involved, many lenders are more than willing to cooperate. Another option is to go to the media. Banks want to avoid public relation nightmares, and as long as you can prove the foreclosure is wrongful, you are likely to have a strong case in the public’s eyes.