Tips for Avoiding Foreclosure During Hard Times

During these tough economic hard times foreclosures are becoming more common. If you are looking at the possibility of having your house foreclosed on, there are ways to slow down the process and in some cases, even stop it all together.

Tip # 1: Take a look at all your assets that you may be able to part with to get that extra money.

If you have an extra car or a recreational vehicle you may want to look into selling them, no matter how difficult it may be to part with them, every little bit counts. If you have jewelry, especially gold, you can often find an estate buyer or jeweler to pay you cash on the spot. If you do not have any assets you can part with, you may want to explore the idea of taking a second job. While no one likes having to work more than one job, it can be a temporary way to start bringing in a larger income. Even if you cannot make up the entire amount you owe, once you have extra income, often the lender will recognize you are trying to get back on track and may be more apt to working out an easier payment or other arrangements that will keep you from losing your house.

Tip # 2: Other than food and healthcare your mortgage payment should be at the top of your list.

The first things to go are anything that you that is not vital for your survival. You must be brutally honest with yourself and think, “Do I need this or do I want it?”This could be a membership to a fitness club or scale or perhaps even your cable and internet service temporarily. If you have credit card debt or other unsecured loans or debt, it is better to make your mortgage payment and try to work something out with the other companies.

Tip #3: Know your rights

Knowledge is power and you need to make sure you know your rights and the laws of your state. Read all your loan documents to find out how and when your lender may take action. What kind of mortgage do you have? Is it an interest only mortgage? Do you know the terms you agreed to? You should also contact your state’s housing office to find out the foreclosure laws and time-frames that apply to foreclosures.

Tip #4: Do not ignore your problem

If you are getting notices and letting them pile up, it will become harder to save your home and also makes it look as you are indifferent to the situation. When you first know you are in trouble contact your lender right away and see what option they can offer you. Most lenders would rather try and work something out with you until you are past your hard times.