Worry over foreclosure creates an enormous amount of fear for so many people, particularly in the present economy.
It is crucial for everyone facing foreclosure to start thinking on a more positive note, by gathering all the information you can about preventing foreclosure.
Living in fear that you could possibly lose your home is a very stressful situation, and it can literally stop you from thinking about anything else or functioning.
Money problems are the number one reason for divorce in the US. So just think how much the strain of facing foreclosure can damage a relationship.
The first step in dealing with foreclosure is that everyone in the family should pull together to learn all that they can about foreclosure, and what steps you can take to avoid it.
First off, do not make the mistake of avoiding important phone calls from your mortgage company or bank. Don’t go a long time without contacting them to make some sort of payment arrangements.
If you try to dodge the situation, you will only make it worse, and could definitely could lose your home if your lender does not think you are a responsible, reasonable person who is willing to do what it takes to keep their home and avoid foreclosure.
Foreclosure does not make you stupid, or a failure. It is just a house at the end of the day; however, everyone does need a place to live. You also want to do what you can to prevent foreclosure because it would mean losing all the money you have already put into the home.
Foreclosure would also mean a black mark on your credit score which can make life a great deal harder in the future. So do whatever you can within your means to avoid foreclosure if at all possible.
People faced with the threat of foreclosure feel as if they are the only person in the world this has ever happened to. One look at the nightly news will tell you this is NOT the case.
There ARE ways of finding out more, and people willing to help you. So put your pride aside, and ask for help. Chances are you were struggling financially long before foreclosure reared its ugly head.
So part of the trouble is that a great number of us are uneducated about foreclosure, while still others of us think we ‘know’ about foreclosure but have actually received wrong information.
For example, unscrupulous companies might tell you that they can make your foreclosure go away, but what you are really doing is signing over the deed to your house and ending up a renter.
It is not the worst thing in the world to happen, since you still have a roof over your head, but it is unfair if you have been tricked into it. And as we said above, you will have lost every bit of equity you might have put into the home, and any chance of using it as a sound investment.
Because of being uneducated about what foreclosure is all about, and the many different things that could be done to avoid foreclosure, too many people really are losing their homes to foreclosure.
There is a lot you can do to avoid foreclosure, and the first thing is to make sure that you really are financially stable enough to afford the home that you have bought. If every penny is going towards keeping it, you have overextended yourself and need to look at either bringing your payments down somehow, or bringing extra income in.
We never know what is coming around the corner in life, so far too many people over-extend themselves on credit cards, car lease agreements and so on. Then they are unemployed, the cost of gas goes through the roof, they become ill and can’t work, and so.
What should you do if any of this happens to you? The first thing you should do is look at your budget. If you have not got one, look in the Money section of this website for lessons on how to make one.
The next thing you should do it tell your bank. It is better to let them know of a potential situation which might arise, and then never happens, than to hope it will go away and not take steps to deal with it.
If anything unfortunate occurs that would cause you to fall behind on your monthly mortgage payments, don’t dodge the bank, phone and ask for an appointment.
Let them know what has happened, when you think you can pay, what steps you are taking to solve the problem. Discussing your financial issues with a professional can put you on the right path, not the path to foreclosure.
Planning for this sort of eventuality is something far too few people do. No one wants to think about foreclosure when they buy a house, but as we are advised by the experts with regard to asset management, know your budget, and have an emergency fund set by for a rainy day which should cover at least 6 months of your day to day expenses,
Knowing what to do in a time of crisis can truly be a lifesaver for many people. Understanding that foreclosure does not mean that you’re a loser can hopefully remove the fear and angst, and help you deal with foreclosure in a much more pro-active way.
With your budget in hand, get your priorities straight: roof over your head, utilities, food. Then try to determine if there are any changes that could be made that will save you some money each month to help you make up for the missed mortgage payment or the emergency situation you are dealing with which has caused you to fall behind.
Having a positive attitude toward your budget and asset management will also help you stay in the black and out of the red and avoid foreclosure.
For more information from the government on the steps you can take to avoid foreclosure, you can visit:
http://www.hud.gov/foreclosure/index.cfm]]>
