If you are worried that your home may be in foreclosure soon, it is important to start preparing as far in advance as possible. There are ways to avoid foreclosure -- provided you start making changes as soon as possible, and get in touch with your mortgage lender.
Over at Gather Little By Little, there are some great tips for getting through the foreclosure crisis:
- Understand your rights. Look through your mortgage loan docs and find out what kinds of rights are available in your state -- and those offered by the federal government as well.
- Re-do your monthly budget. You need to consider changing things up with your monthly budget. If you want to be able to make your mortgage payments for as long as possible, you need more cash. This means cutting back on non-essentials. Also, realize that your mortgage payment comes before your credit cards. The credit card company can't take your house.
- Notify your mortgage lender. Do this as far in advance as you can. Let your mortgage lender know that you want to make payments, but things are difficult. If you give enough notice, and show a desire to fulfill your obligations, most of the time your mortgage lender will work with you.
- Get a hold of HUD. This government agency has a list of mortgage lender programs and counselors that can help you avoid foreclosure. Visit the HUD Web site or call 1-800-569-4287.
- Watch out for scams. If someone comes to you about helping you avoid foreclosure, be on the alert. It could be a scam. Don't sign your home over to anyone, and don't pay fees to "counselors" and "specialists" that claim they can single-handedly stop your foreclosure.
I find that these are very sensible tips that can help you avoid foreclosure. Working through it is not easy, and it can mean making tough decisions.
image credit: sxc.hu
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