What You Should Do to Avoid Foreclosure

09
August

Unfortunately, many people are struggling to keep their head above water financially these days. It may feel like a juggling act when we go to pay our monthly bills. As if it is not stressful enough to deal with insurance and car payments, many out there are doing this with the threat foreclosure looming in the background. There are hundreds of thousands of Americans who are at serious risk of losing their home each year.

People tend to give up when they feel that foreclosure is coming their way. They may figure that there is nothing that can be done to prevent it from happening. For those who are really determined to keep their home, however, there may be a couple of tricks you can try before allowing the bank to snatch the roof from over your head.

The first and most obvious thing is to tighten your belt. Make sure that you are not overspending on unnecessary items. Even letting go of that one coffee a day from the nearest shop can save you over $1,000 a year! There are one or even two months of home payments! Make sure that you prioritize your spending. It will be difficult to choose the most important things to pay but it is something that must be done.

Do not ignore the problem because it is not going to go away. Ignoring calls from your lender or mortgage broker is not going to help the situation at all. Instead, pick up the phone and try to work with them. They want the money from you just as much as you want to give it. No bank wants to foreclose on a home in this market because they usually end up losing money.

You should speak to your lender or anther reputable agency about refinancing your home loan. Lowering your interest rate or extending your loan will shave a good amount off your monthly payments. Make sure, though, that the company you are dealing with is a trustworthy one. There are many refinancing companies making false promises and trying to charge upfront fees. Steer clear of these organizations.

Make it a point to speak to your local housing counselor. They are there to help if your current payment plan is no longer affordable. They will be able to suggest different options that you can try such as selling your home or modifying your home loan. These counseling agencies are out there to help and know all the ins and outs of the business.

Last but definitely not least is to know the foreclosure laws in your state. There are many websites out there that have state laws readily available for you. It is imperative to know how long foreclosure lasts and whether you would be expected to pay the remainder of your mortgage even if you were foreclosed upon.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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