Foreclosure on a house is something we never imagine will
happen to us but statistics show that many people do go into
mortgage foreclosure. If you see default payments as a
future issue then it is important to know how to avoid
foreclosure. If the proceedings have already begun, you can
get more tailored information by researching the foreclosure
timeline according to the state in which you reside. However
if the proceedings have not begun and you simply want to stay
ahead of the game then here are some tips to avoid foreclosure.
Investigate lenders…Whenever making a big purchase, do
research. Different lenders will offer different interest
rates. Know what you can afford and especially know
everything the loan entails. Always read and reread the fine
print. The key point to remember is before you commit to
taking a loan and signing the mortgage documents, or deed of
trusts know exactly what you are getting into. Get financial counseling…if you can. If meeting with an accountant is not
a fiscally feasible option, search the internet for tools to help keep your finances in good health. There are many resources, like the National Association of Foreclosure Prevention Professionals
(NAFPP), agencies who serve to assist and educate you in finances.
The goal is to make payments on time and avoid default payments,
which can lead to foreclosure on your home.
Pay bills on time… Of course that is everyone’s intent. Yet, we
are all human and late mortgage payments can happen to anyone.
Between taking care of the family and working 40+ hours it
becomes easy to miss one of the seven monthly dues. The last
piece of mail you want to receive is a letter from your lender
saying you have defaulted on your home loan. Staying on top of
your finances is essential in avoiding foreclosure. Know exactly
how much you have in the bank, how much is going out to all bills
including credit cards, insurance, etc. Most banks give the
option of online banking which can be extremely helpful.
Get out before the storm hits…Many people who lose there home in
a foreclosure are completely unaware of their defaulted payments
until the foreclosure proceedings are in effect! Again, stay on
top of your finances and if you realize that you have gone in
over your head then find a way out of the mess. Don’t panic.
This does not mean pick up and leave your house. This means
talk to your lender, a local investor, or someone you know who
can help; whether you decide to sell your house, re-finance,
take another loan, etc.
Know your options…When you’re behind on two mortgage payments,
it is easy to become overwhelmed and scared. If you foresee
financial struggles, know your options. When facing foreclosure
selling your home, refinancing, and secondary loans are all just
some of your options. There are online resources which can guide
you in the right path, as well as local investors who solely
dedicate their work to helping people in foreclosure.
In order to maintain financial health and avoid foreclosure,
financial counseling, doing research and knowing your
options are all key elements. When you are financially
struggling, days become restless and it seems like life only
gets harder. Know that you are not alone. There are people in
your same situation and there are people who can help. Reading
this article has already put you 5 steps ahead of the game.