Every day thousands of families are unable to make a mortgage payment. Whether due to a recent job loss or just the changes in the housing market, today more homeowners are facing foreclosure than ever before in our nation’s history. What many of these families don’t know is that it is possible to avoid foreclosure; as long as you don’t delay. If you act quickly, you can avoid foreclosure and here are some helpful tips to get you started.
Step One: It’s time to realize what really is important in your finances. It is time to prioritize your bills, make a budget and realize that the basics of food, shelter and the necessary utilities should be paid for first. Everything else will have to wait until you are on your feet again. For many people, the realization that cable and phone packages with text and every other fancy option are not necessity is a tough one to come by. The truth is you can live without all that jazz. So when it comes time to prioritize your expenses, ask yourself if life will go on without it and do I really need it? This is also a great time to review your assets. If you can sell that second car and start taking the bus, then do it. If you can take on a side job or start generating passive income, there is no time like the present.
Step Two: Don’t try to ignore the problem and hope that it will go away. Don’t ignore mail from your lender or collection agencies. It is important that you understand your full financial situation and these letters usually hold useful answer to questions like what is the balance on your mortgage and what actions, if any, your lender is planning to take. Communication with your lender is going to get you much further than hiding from them. Answer the phone, respond to emails and provide whatever information you can, just don’t hide.
Step Three: Remember you do have rights and now is a great time to get to know them. Take the time to review your loan documents. This will easily reveal to you what exactly your lender is allowed to do when you miss a mortgage payment. It is also a great time to bone up on foreclosure laws in your state. You can get information from HUD, the FHA or from your state Government Housing Office.
Step Four: Seek help. Talk to a housing counselor or a foreclosure avoidance counselor to explore your options for avoiding foreclosure. Most housing counselors, especially those approved by HUD, will offer you a free consultation, budget analysis and advice to get you back on the right financial track and hopefully move you miles away from foreclosure. Many will be able to advise you on restructuring your mortgage payments and ways to work with your lender to help you avoid foreclosure.
Step Five: Don’t be led blindly by any company offering to help you for a fee. Any company that is really going to help you avoid foreclosure isn’t going to charge you money to do it. Don’t become a victim of a real estate or foreclosure scam. There are legitimate companies that offer to negotiate with your lender on your behalf, but understand that their services come at a pretty hefty price and there are non-profit organizations who can help you just as easily. The other scam to be weary of is any company who tells you that they can help you avoid foreclosure simply by you signing a document that states that they can negotiate on your behalf. You may be signing your house over to such companies.
There are solutions that can help you avoid foreclosure and no matter whom you choose to work with, or if you choose to go it alone, your options are generally the same and often include: Forbearance where a lender may allow you to delay payments for a short period of time; Reinstatement in which you have a set deadline to make a lump sum payment; and Refinancing or Modifying your mortgage where you either pursue a change in your interest rate or extend the length of your loan. Another option is to sell your home. You can either opt for a short sale in which the lender gets all of the cash from the sale or you can sell your house to a real estate investor possibly pocketing some of the cash and repaying your lender.
The most surefire way to avoid foreclosure is to start better managing your money. For great tips on money management and stretching your dollars, Lucas Properties suggests any of the eBooks available from Living On A Dime. From tips on saving when you shop for groceries to digging yourself out of debt, these books offer great money saving advice that can help you save yourself from foreclosure by keeping your hard earned dollars in the right pocket-Yours.
To learn more about Living on A Dime, Click Here. If you don’t think that foreclosure is avoidable for your situation, there is still hope. Visit our home page and complete our sellers form to sell your house fast for cash. That is right; we will make you a cash offer on your home, regardless of condition. We also offer fast closing in less than 2 weeks. Avoid foreclosure and the credit damage it will cause. If the tips above don’t save you from foreclosure, then we hope you will contact us and let us help you save your credit and sell your house fast.
Final Thoughts: Don’t give up, don’t lose hope and definitely don’t walk away.
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