Even with the threat of foreclosure the acceleration brings a homeowner still has options and plenty of hope. When a homeowner is faced with difficult situations as these, it is very important to remain positive and calm. A consumer with this letter should immediately call their mortgage company. Prompt response can be the difference from foreclosure to getting caught up on payments.

The lender will be happy to hear from their customers and probably very eager to work out a payment plan. Call the lender and ask what arrangements if any can be worked out. Explain how the situation has happened and what will be done to prevent it in the future. Many times a consumer can avoid paying all the money required in 30 days by the acceleration warning. Most of these consumers don’t have any hope or chance of paying the entire amount. Once an acceleration warning is issued, the customer is at least two months behind and will be asked to pay three months of payments. These consumers are having a hard time making one payment, so asking for three payments at once would almost be impossible. The lenders are very aware of these statistics and look forward to the customer calling and collecting their money.

How long does a homeowner have before foreclosure after an acceleration warning? This can vary from state to state and by lenders. However, a lot of lenders will have the foreclosure set to happen in about six weeks from the end of the acceleration warning. Then a homeowner will be served papers and required to leave within 10 days. Once the acceleration warning has passed without response, it becomes very difficult to set up payment arrangements or come up with the money. At this point the lender will require the customer to come up with all the money in most cases.

I had to bear the heat in order to save some money by doing it myself. The problem was the roof and wood underneath it seemed fine. I had an idea where the leak was due to the water on the sheet rock and in the ceiling. I had felt water but couldn’t for the life of me figure out where it was coming. The water wasn’t on any of the insulation, it was just beneath it. There didn’t seem to be enough water to even show up on the ceiling.

Wednesday came around and rain was in the forecast. I thought this would be the best shot in determining my water problems. It was a lot cooler and with the water coming down, I figured that it wouldn’t be hard to spot any leaks. The cooler temperatures allowed me to stay up in the attic until the leak was discovered. I finally found ithe leak in less than 15 minutes.

The leak was actually coming from the drain pipe off the air compressor. I don’t have a lot of experience in doing it yourself projects, otherwise this could have been solved with in minutes. The fan unit was getting so hot it causes the compressor to leak out condensation. This is why the units have a drain pan underneath them. I did see this before, but there was no water coming from it and the pan was low. I just didn’t think about it. The leak was about 15 feet from the unit.

Cleaning out the unit was very easy for me. I took a clothes hanger and unclogged the pipe from the outside. I also put some Drano in the pipe to clear out any leftover mess. Important! Drano probably isn’t safe to put in the pipes, please don’t do this yourself. The clothes hanger alone probably unclogged the pipe. I now see a good flow of water and haven’t had any problems since.

This information may be helpful if you find a leak. To keep your air conditioning unit at its best you should change your filters at least once a month and make sure your pipes and drain pan is flowing smooth. Both of these can be done in minutes and may add many years of life to your air conditioning system.

Children may not show the typical signs of being stressed, yet it is important for them to be able to open up and talk with parents and other professionals who can help them. It is also very important that adults to find help as well.

Many people go into foreclosure faster than they ever imagined. Some states have a two missed payments law to start foreclosure. This means a mortgage company can start foreclosure with only two payments missed. These payments don’t have to be consecutive either. The best thing a consumer can do is contact the mortgage company immediately if they can’t make a payment. The mortgage company may can defer the payment by adding it to the end of the note or working something else out. However, if you ignore the payment or wait too long, the mortgage company will be less likely be in a position to offer you the same options if any at all.

What if you get a warning of foreclosure is it too late? No! The mortgage company is not in the business of repossessing or selling properties. Mortgage companies would like for everyone to pay their mortgage loan off. If a loan gets foreclosed, the mortgage company stands a chance of losing a lot of money.

Most mortgage companies will work with their customers the best that they can. They will only have a property foreclosed as a last result. However, once the customer ignores or fails to make arrangements to pay their loan, it is in the mortgage company’s best interest to have the property foreclosed and sold as soon as possible.

Where can you turn for help? If possible work with your mortgage company and try to make payment arrangements or come to an agreement that can help bring your loan out of default. If it is not possible to come to an agreement with the mortgage company, then it can be wise to seek alternative help. Mortgage companies may can offer or refer you to HUD (U.S Department of Housing), to help you find a list of HUD approved counseling agencies in your area.

A counseling agency may be able to take your information and talk with your mortgage company to help find a solution to your problems. These HUD approved counseling agencies are set up to assist consumers and mortgage companies avoid foreclosures. Some mortgage companies donate money to these not for profit counseling agencies to help consumers.

HUD has a website set up to avoid foreclosure at http://www.hud.gov/foreclosure/index.cfm. Here a consumer can find tips and information to help avoid foreclosure. A consumer can receive a list of HUD approved counseling agencies in their area by calling 1-800-569-4287.

HUD also announced a  program and hot line campaign called HOPE LAUNCH. HOPE is a foreclosure prevention education campaign designed to educate and prevent foreclosures. The HOPE hot line number is 1-888-995-HOPE. You can read more on the announcement at http://www.hud.gov/news/focus.cfm?content=2007-02-14.cfm#1 or visit Homeo Ownership Preservation Foundation (HOPE) at http://www.995hope.org/ for free help, advice and education.

You should only use an approved list of HUD approved counseling agencies to assist you with foreclosure prevention. These agencies can help you find a solution and deal with your problems. They may can give you options that can really help. These HUD approved agencies can keep your information confidential and you will not be judged. The sooner you contact HUD, the more you increase your chances of avoiding foreclosure. They are here to help, so don’t wait until it’s too late.

Best of all, homeowners can save up anywhere from 5-15% off their homeowners insurance policy. If a homeowner has a $1,000 policy and saves 15% that is an annual savings of $150. So a homeowner can actually get an alarm and monitoring for free and make $30 in this example. $10 a month x’s 12 months = $120. Savings on an annual policy is $150. Take $150 - $120 = + $30.

Even if you don’t find these exact situations, an alarm will save money on insurance and can protect your family and home. If you do good research for an alarm and find a great price, you can find having a security alarm can be an excellent value.

Burglars are less likely to break in to a home with a home security alarm. These alarms are proven to be very effective. This is why homeowners insurance companies will lower your rates for having one. A security alarm will lower your risk of theft, vandalism and other dangers. Top all this off with additional safety that comes with an alarm and as a homeowner, this can become one of the best values on the market.

As taxes go up, so will esrows. The higher the cost of taxes and insurance, the higher a homeowners’ monthly payment will be. Escrows can adjust with cost of living and estimated property tax increases.

Paying property taxes and mortgage insurance through an escrow can be the most affordable way to go. This forces a homeowner to pay taxes and insurance on a monthly basis. An escrow will keep a homeowner from falling behind on taxes or insurance.

Choosing not to escrow taxes can come back to haunt a homeowner. Not paying taxes can result in foreclosure. A mortgage company can add homeowners insurance to a note if the homeowner drops, fails to insure or has a policy get canceled. This will result in much higher fees. Insurance with a mortgage company can be 2-5 times higher than with an agent. This informs a homeowner the value of having both taxes and insurance escrowed with their mortgage company.

Some insurance companies charge $10 a month, for a policy fee. If you have an annual contract this adds $120 to a policy. How can insurance companies get away with such a fee? Is this a loop hole, or a way for homeowners insurance agents and companies to get more money?

Before deciding on a new animal, check with your homeowners insurance company to see if your rates will go up. Insurance companies can raise rates, deny or drop coverage to homeowners who choose to own a violent dog.

A violent dog is considered a breed of canine known to cause serious injury or death. Leading these breeds are pit bulls. Pit bulls have been associated with fighting and violence. Here is a partial list of some of the dogs considered violent by homeonwers insurance companies. Source: III

• Pit Bulls
• Rottweiler
• German Shepherd
• Siberian Husky
• Alaskan Malamute
• Doberman Pinscher
• Chow
• Great Dane
• Saint Bernard

Keep in mind that there are many other canines that can be considered violent as well. Pit bulls seem to be the most known breed to cause serious injury or death. And most insurance companies will raise your rates or deny coverage to homeowners who decide to raise pits.

Please inform your insurance company of any potential violent canine you have or get. The worst thing a homeowner can do, is try and keep the dog away from the insurance company. A lot of people will not inform their insurance company that they have a violent breed of dog to maintain lower rates. This is very wrong and can end up damaging you financially.

If you fail to inform your insurance company of the violent dog, they may choose not to pay out claims filed in association with this dog. If the dog gets out, hurts somebody, or a child tries to pet it and gets hurt, the owner is responsible for the entire injury. It may be possible to lose everything in certain injuries or deaths. Just be cautious before taking on a violent animal and make sure you have proper training and facilities to accommodate.

During the process not one agent asked if I wanted flood or mold coverage. Flood coverage protects damages from water coming from the outside in. Most policies already cover water damages from plumbing, pipes, baths and any other sources in which comes from the inside of your home. This protection is great to have, but it will not cover you from a devastating flood. Floods kill more people and possibly cause more damage than any other natural disaster in America. So with this in mind, why don’t insurance agents care to at least offer you this protection?

This is very hard to answer. Some possible reasons for agents to leave off flood protection could be to, offer a lower priced quote, not trained properly or consider it not important. Agents who aren’t aware or consider flood damage not to be important, should lose their license or be forced to get better educated before writing anymore policies. I know these agents aren’t forgetting to ask if you want it, because everyone declining flood coverage must sign an agreement stating they was offered coverage but refused protection.

Mold has become a very hazardous and costly to insurance agents as well. In the late 90’s and early 00’s mold coverage became a big problem for a lot of insurance companies. Texas Insurance Companies may have been hit the hardest during this time. A lot of these companies couldn’t afford to pay these claims. They did not plan or was unaware of  how big a problem mold coverage was. Even major companies dropped coverages and refused to write any new policies in the state. They decided is was easier and less expensive to quit doing business vs. solving the mold problems and paying out claims.

Mold coverage protects against dangerous fungus and bacteria growing in your home. Black mold is probably the most typical or common type of mold. It is a fungus or bacteria that grows most commonly where water is present and left standing with a blackish color. A leaky pipe, tub, toilet or roof in a cool dark and damp place is a hot spot for mold. With these dangers in mind, it puzzles me greatly that many agents don’t offer this coverage.

Mold coverage may not be offered for many of the same reasons that some agents don’t offer flood protection. Again anyone who doesn’t want to have mold coverage must sign an agreement declining coverage. unfortunately for most insurance buyers, some of these agents don’t explain or prefer you not to read the agreement in which you are signing.

The agents failing to offer or teach people the importance of the different coverages, are making the Internet a much more attractive place to get insurance quotes. The Internet can educate you on the entire homeowners insurance coverage options. Internet sites can also allow the public to get a policy designed for them. Visit our homeowners insurance center to learn more about coverage options, available tools, free worksheets, tips to save money or get a quote.

Reporting a claim immediately will make it much easier on the insurance company. Also they will be less likely to dispute or challenge the claim.

Claim checks do have a time limit or an expiration date. Some people for whatever reason never get their property fixed. They get a check, put it away and forget about it. These people may just put off getting a contractor or setting a date for repairs and allow their claim check to expire.

Coordinate your claim with your contractor. Don’t allow your check to expire. It will be very hard to convince the insurance company to issue a new check. This is why insurance companies have an expiration date. It will be a lot cheaper on them if you never get the property repaired.

After any major storm, like severe weather, you should look over your property and check for damage. High winds, hail, water and lightning are the most probable reasons for property damage. Remember, if you find any damage, call your agent or insurance company immediately. The longer you wait, the more complicated or difficult filing a claim will be.

Your deductible will need to be paid at time of service. This seems to be another reason many people put off filing a claim. You should still report and file the claim even if you can’t afford your deductible. Most homeowner’s deductibles are at least 1%. Check out tips to help you avoid paying a deductible.

Homeowners insurance deductibles can’t be avoided and will have to be paid in most cases. Insurance companies require a deductible to help lower insurance cost, reduce claims and minimize risk.

Reporting a claim on a home can effect insurance cost. As always, it is important to weigh your options before filing a claim. If your deductible is 1k, and you have damage less than this, filing a claim doesn’t make any sense. Even if the damage is just a couple of hundred dollars more then your deductible, filing a claim may not be worth it.

A claim can make your homeowners insurance go up for a few years. The claim may also make it harder for you to obtain a new policy or allow your insurance company to cancel coverage. Being smart and learning insurance will allow you to maximize your home and auto insurance coverage.

The most common reason for a company canceling a policy would be fraud. This is a no brainer. If you made a fraudulent claim, then expect your policy to be canceled. Everyone has to pay for the few who try and cheat the system. If you suspect or know of fraud, contact your local police department and report it right away. This helps everyone, and can reduce crime.

Some insurance companies are unfortunate or get hit hard and have to go out of business. If this happens to you, take it serious. There are many people who, for whatever reason, ignore these serious letters sent by a troubled company or the state. Read the entire form, and contact your state’s department of insurance for more information.

The state will have the company transfer or sell the policy to another insurance company willing to take up your current insurance companies policies. You should get the option to go with this company for the same coverage and price, as long as you fill out the proper paperwork during the appropriate timeframe. If this happened to me, I would just start a new policy all together, unless the policy was paid in full. In that case I would most likely choose the company offering the same coverage, that decided to take the policy over. I wouldn’t take this option if that company had a bad rating. To check ratings on insurance companies visit A.M. Best.

Too many claims, is another reason for an insurance company to cancel a policy. If you are forced to file several claims and your insurance company cancels your policy, then shop for a new policy. You might have to shop several insurance agents and companies to get a new policy. A lot of companies stay away from customers who file multiple claims, even if you filed claims that weren’t your fault. Contact your state’s department of insurance and ask for advice. Don’t get frustrated, continue to search for a new policy at all cost. Unfortunately, you can expect to pay much higher rates for homeowners insurance.

There are other reasons for a company to cancel a policy. Always seek help from a professional in this situation, before buying a new policy. This may help you avoid this situation again in the future. For help, find your department of insurance or find information at A.M. Best, III.org, or feel free to ask us any questions, contact us.