Five Ways to Help a Friend Who is Facing Foreclosure

With the sub prime mortgage debacle wreaking havoc among strapped homeowners, the rate of foreclosure is soaring in every region of the nation. Whether a friend of yours has fallen victim to the sub prime mortgage disaster, or simply has fallen behind in house payments due to unemployment or poor money management, there are ways you can help them in this time of need.

Five Ways To Help A Friend Who Is Facing Foreclosure: Point Them In The Right Direction. When facing foreclosure, it is very tempting to simply pull the covers over one's head and deny the severity of the situation. By waiting to act until the the notice of auction is printed in the paper, that is almost a guarantee that your friend's home will be lost due to foreclosure. The truth is that banks don't like to foreclose upon homes unless it is absolutely necessary. The bank loses money on every home that is foreclosed upon, and in most cases, will work with the lendee to avoid foreclosing on the home. Encourage your friend to talk to the lender instead of ignoring the phone calls and letters. Your friend may be surprised at the bank's willingness to work with them. Give your friend the telephone number of HUD so that they can educate themselves of their rights and the agencies who offer assistance in these situations. If your friend is a veteran, there is even more assistance available and should be taken advantage of if necessary. If your friend is simply too depressed to research the information, do the legwork yourself.