Category: Foreclosure

Foreclosure: How to be more Pro-active to Save your Home

Stopping foreclosure might not always be possible, but if you do nothing at all, you will definitely not be able to stop it.

If it is the difference between keeping hope alive, and keeping your home, or just giving up and hiding, choose to be more pro-active if you think you are in danger of foreclosure.

There are many different things that you should consider when attempting to stop a foreclosure. First of all, remember that it has happened to many other people besides yourself. It does not make you stupid, or a bad person, it just means that you need help. You need a reality check, and you need a plan on how to deal with foreclosure.

If you are at least three months behind on your monthly mortgage payments then you are definitely at higher risk of losing your home and there probably will not be anything you can do if you choose to wait until then before ever attempting to be proactive in any way.

If some extra bills have come up and you are already thinking that you might possibly have to put off paying your monthly mortgage payment, go ahead and give the mortgage company a phone call. By taking action before something happens, just when you suspect that it may, you are being proactive.

People who end up in financial trouble for whatever reason who are on their toes are typically the ones that can and will prevent foreclosure on their home.

You must be assertive in trying to make arrangements with your mortgage company because if all you do is sit around and cry about being behind on those monthly payments, they are not ever going to want to speak with you about anything.

Trust me, as unbelievable as it may sound, the mortgage company truly does NOT want you to lose your home due to foreclosure. They really don’t want an empty house that they can’t sell, or will have to sell cheaply. They want regular monthly payments coming in, especially all the lovely interest you are paying them!

Maybe they should have possibly used better judgment whenever they were approving you for any type of mortgage loan and letting you purchase a home through their lending company. They are normally very willing to speak with you to try to work out some sort of solution.

There is no reason at all for you to just wait around for them to call. You can and should make the first move. That will look really responsible to them and they will absolutely take note of that responsible behavior and pro-active attitude,  and will more than likely allow you to tell them the entire story as to why you were late on your monthly mortgage payments.

Once you have discussed your difficult circumstances with them, and hopefully some sort of plan for what to do to make up the arrears, and how soon you think you can do this realistically,  story with them, chances are they will take your suggested payment plan seriously.

If you suggest you will get a second job, or your wife will go back to work part-time, or you show them a well-thought out household budget that you will stick to, then changes are they will be willing  to work out some type of payment arrangement with you, often right on the spot so you can avoid foreclosure.

It does not always work out, but being pro-active is going to get you much closer towards preventing foreclosure than just giving up.

Remember, whenever you are planning a budget, make sure you take care of the most important aspects first–housing, utilities, food, car if you really have no other means of getting to work and tending to your shopping and so on.

Everything else is OPTIONAL, including credit card payments. Can you get some wiggle room there? Get a lower APR on the cards you do have?

A good sound budget may mean tightening your belt for a number of months, but it is better to do whatever you can NOW to possibly stop foreclosure, so that you won’t lose all the equity you have in the home, and lose  everything you have worked so hard for throughout the years just because you have hit a bad patch.

For more information on foreclosure and what you can do to be more proactive about stopping foreclosure, visit:
http://www.hud.gov/foreclosure/index.cfm

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Foreclosure Assistance to Help Save Your Home

 

For anyone who is undergoing a great deal of stress thinking that they might possibly lose their home due to falling behind on their mortgage payments, there are many options that could potentially save your home from foreclosure.

It is very important to seek foreclosure assistance available as soon as you think you are going to have a problem meeting a mortgage payment. Leaving it too late will remove many of your options.

One resource that you could utilize would be the many different online resources, where there is 24 hour foreclosure assistance available for people who are in need.

The online resources are government or nonprofit organizations which are available to everyone who is in need of assistance. They might even possibly be able to contact some of your creditors to discuss with them some type of payment plan, which could help you to manage your finances more appropriately.

The internet is truly the greatest place to locate all sorts of information about foreclosure, to educate yourself and know your rights.  Here at this site, we talk about foreclosure, and also the importance of having a budget which can help you formulate a plan for getting out of trouble with the mortgage company or bank.

In addition to looking up foreclosure information on the internet, Try going to the yellow pages on the internet or even in your home telephone book. Throughout the yellow pages you should be able to find more information about finding foreclosure assistance in the area which you reside in.

Another great resource for locating information about getting assistance with your foreclosure is right at your local library. Visiting the library regularly is a really good idea anyway because it is a good way to get access to new reading material, books and information, plus the internet, inexpensively. Let’s face it, everyone has to tighten their belts nowadays.

In the library you will have the opportunity to find many different resources about foreclosure assistance that could be very helpful to you. There will be advice in the self help section on budgeting, better money management, asset management, and even investing, which could be very beneficial for anyone in need of better financial advice.

But your first priority should always be to make sure you don’t end up homeless. No one wants that, certainly not the bank. They want the nice tidy income from the interest you keep paying them every month, which over 25 years adds up to a fair amount of money!

So, if you are in need of foreclosure assistance, put aside your pride and ask for help. Better to do it at the first sign of trouble and be prepared, than to hope things will get better and in the process make your situation worse.

Learning how to manage your money more efficiently will definitely be your first step in order to see how you can avoid foreclosure and make sure that you don’t ever get behind on your important monthly bills.  A good budget can also help you if you want to go to the bank with a plan on how you are going to make up the missed payment/s

It does not matter which resources you choose to gather your information from on foreclosure as long as it is current, reliable and trustworthy. Take the time to do the research you need on foreclosure and how to prevent it.  Take time to write out your budget.

Above all, come up with a realistic financial plan you can live with. You might not have the glamorous lifestyle you once had, but a few sacrifices here and there will be worth it if you get to keep the home you have invested time and money in, and can stop foreclosure before it ever happens.

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Are You In Constant Fear Of Foreclosure?

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]]>

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The Threat Of Foreclosure Is On The Rise, Part 3

Continued from Part 2

Foreclosures are definitely going to keep on rising, even with attempts by the government to bail out this situation. The biggest disaster would be if banks failed as a result of this foreclosure fiasco. Bear Stearns already collapsed under the weight of bad debt from houses that had to go through foreclosure proceedings. Most banks profits are at a standstill, or a 90% drop since last year.

Foreclosure is happening all over the United States and that is why it is so vital that you try to learn more about ways to prevent foreclosure from happening to you and your family. You should never take the loss of your home and major investment lightly. If you are buying a home in this rock-bottom market, make sure you factor foreclosure into your equation.

Careful forward planning will remove a lot of your financial worries and anxiety over owning a home, and given the economy going into recession, we should all definitely be trying to come up with some plans to help manage our bills each month and possibly even save ourselves some extra money. Put the plastic away, brown bag it for lunch every day, cut down on takeaway, or lattes.

Your home is the most important thing you own, but you don’t own it until you’ve paid every last cent on it. So you need to protect your investment in that home and avoid foreclosure. Stick to your budget and pay down debt, then remain debt free. Check your terms on your mortgage and find out if there are any penalties for early repayment (this might seem silly to you, but that is how the banks make their money, from all the interest you pay on the loan!) If there is no penalty, then go for it.

Even an extra $10 a month will help if it is the difference between being in debt for ages (think those minimum payments on your credit cards-again, they are making all their money from the interest you pay!) and getting out of debt as rapidly as possible.

If there is a penalty, once you are debt free, save that money in an interest bearing account, and start looking at safe short term investment opportunities, such as treasury bills, to keep growing your nest egg.

You might find that using these strategies, you can not only avoid foreclosure, you will be on the road to better asset management and true financial freedom.

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The Threat Of Foreclosure Is On The Rise, Part 2

Foreclosure notices are being sent out left and right at the moment, and many families are being faced with the stark reality check of knowing that they just can not afford their home any longer–or won’t be able to if they don’t start acting now to get themselves out of the red hole of debt.

The important thing is to educate yourself, and realize there is no quick fix for the problems which have probably been accumulating over time.

The other thing you should realize is the sacrifices will be worth it in the long run if you are just patient. The first thing you need to do is make sure that you do not render yourself homeless. You must also have enough to meet your utility bills and foods. Those are the basics.

Anything else is totally optional, and only if it is within some sort of sensible budget. A car may be essential for getting to and from work, or if you live in an area where there really is no public transportation. The high price of gas and home heating oil has really hit us hard in the past couple of years, so you are not alone in your struggles, and there are plans from various oil companies that can help.

Don’t be afraid to ask for help, or too proud. If your financial woes have come about as a result of illness, what payment plan options do you have for your medical bills, medications, and so on. Many of the big pharmaceutical companies have assistance programs, and many chain stores carry generics, some of which are prices at only $4. They are buying in bulk, and pass the savings along to you.

You can go to the library and look up all sorts of information for free in books, magazines, and on the internet. There are lots of non-profits that help with issues to do with money management and coping with financial problems. It may be hard to know where to start, but often just looking for the answer to one question will open you up to all sorts of possibilities so you can get yourself back on track financial and avoid foreclosure.

Start thinking of different things that you could do as a family to try to save yourselves a little bit of money here and there, because it not only all adds up in the short term, at the end of 6 months or a year, you will be very surprised to see just how much money you were actually able to save, or to use to pay down debt.

If you have far too many credit cards, consider talking to the lender yourself to explain your situation and ask if you can have a lower APR. You have probably seen loads of offers for 0% APR. So it is in their interests to keep you rather than let you go off to the other lender, so there is room for compromise. If things are looking so bad that you can barely make the minimum payments on your cards each month, consider a non-profit debt management service. They negotiate for the best APR and basically give you a pay down plan.

Let’s face it, it is ridiculous to save for your kid’s college education if you are swimming in debt. So get your budget in order, and above all, draw up a plan to prevent foreclosure which you can show to the bank or mortgage company. Look at all the real life examples at America’s Debt Diet of how people who looked as though they might lose everything, house, equity and investment in the house, and good credit rating, were able to haul themselves back from the brink by making financial management their second or even third full time job.

You do have the ability to make things better for yourself and for your family if you educate yourself, but it is a tough economy and things might just get worse before they get better. The only sure thing is that nothing is going to improve without some hard work and determination. Even if you don’t think you are at risk of foreclosure at the moment, educate yourself now. Draw up contingency plans as to what you would do if you were ever to lose your job, or become ill, and not be able to make your mortgage payments on time.

Learn more in : The Threat Of Foreclosure Is On The Rise Part 3

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The Threat Of Foreclosure Is On The Rise, Part 1

Even though interests rates are not really that high at the moment, the purchasing of homes all around has definitely taken a downward slide.

There are so many people that never have had the opportunity to experience the great joy of getting to purchase their own home, while still others have seen their dream become a nightmare in recent months.

Paying rent on homes throughout the years seems like a huge waste of money, when it could be going toward building equity in a home. Investing in a home in the hopes that the value will go up.

But since our economy has gotten so bad lately, it is difficult enough to even keep food on the table, let alone make those large monthly payments. The government has brought the interest rates down, but if you were on a fixed rate mortgage, chances are that has not really helped you.

The threat of foreclosure is extremely stressful, but don’t get paralyzed like a deer in the headlights. It is really important to talk to someone about your foreclosure situation before it gets out of hand.

In this article we will talk about the threat of foreclosure that has definitely been rising throughout the country. While it is absolutely unbelievable just how difficult these times have gotten for many, it IS possible to do something about it if you are willing to take action.

With our lives being so full of stress as it is, thinking about the possibilities of possibly losing your home through foreclosure can seem overwhelming.

If you find that you are struggling just to make ends meet then perhaps you need to think about making some changes in your life that might make it possible for you to cut down on expenses and make your mortgage payments more manageable.

Read more in: The Threat Of Foreclosure Is On The Rise Part 2

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