What is scarier than Halloween? Answer: Facing the holidays without a house.
The people I meet with are just scared. They are worried that someone is going to kick them out of their house without warning. I explain to them what the process is, and what options they have within it. I help them plan a course for a better financial future, then take the legal steps to set them on that course.
The first thing I ask people is, “Do you have family who can help you through this time?” If they say no, then that is scary, especially for people with kids. If they do have a strong family, then I encourage them to draw on the strength of that family. Asking for help may be easier than having Christmas in your car.
A recent study reports that homeowners with higher credit scores are more likely to walk away from a mortgage than borrowers with lower credit scores. A strategic default or voluntary foreclosure can cost 100 points off their credit score. Those folks are less afraid of foreclosure than they are to defend their house.
If you do not have family to help you, look to the community. The St. Augustine Record did a recent cover story on Joy Bryant of the St. Johns Housing Partnership, which assists borrowers with mortgage modifications. I also work closely with Megan Wall of St. Johns County Legal Aid. Fear of the unknown is a bad thing; find out what you can do to deal with your situation and make a plan for the future.
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