Tips how to Avoid Foreclosing On Your Home
Banks Don't Want You to Foreclose on Your Home!
With today's volatile job market and economic problems, home foreclosure is at an epidemic level. Many people believe that the banks don't care if you have just lost your job or if you have suddenly become ill, and believe that regardless of the reason, failure to pay your mortgage will result in the foreclosure of your home. It may be true that banks don't care about you personally, but they definitely care about your money. There are a few important things that you should know if you feel as though foreclosing is a possibility.
1. The bank does not WANT your house, they want you to keep your loan. Your lender will work with you and your credit counselor to find a way to work with you so that you can make your mortgage payments on time. This is one important thing that people don't realize, and it is an excellent reason to enlist the aid of a credit specialist who knows how to talk to banks on your behalf.
2. If you contact your lender immediately after you realize you have a problem, they will be less likely to force you to foreclose, and will instead try to help you adjust to whatever new situation has arisen that will keep you from paying your mortgage payments on time. Showing that you are responsible helps a lot.
3. Fully understand foreclosure prevention options is key. There are many resources out there that you can use to find out about foreclosure prevention, but many of these sources are technically written. It helps a lot to have a debt management counselor who is familiar with the process by your side as you figure out how to avoid foreclosure.
4. You can use your assets to subsidize mortgage payments, and you can also delay payment on credit cards and other non-secured debt. This is a fine line to walk, though. You have to be careful that you do not mismanage other debt in order to successfully pay your mortgage. A debt management counselor is invaluable at times like this because they can help you avoid a hike in interest rates and other problems that arise from delaying credit card payments
Your home is your biggest investment, and probably your most costly possession. Outside of health care, making your mortgage payment should be your absolute first priority. Home foreclosure is devastating in many ways. Not only are you displaced and all the money you have poured into paying your mortgage is wasted, but you loose a house that you have invested a lot of time and emotion into. Learn how to work with your credit counseling service and your bank to avoid loosing your house.
You can avoid this tragedy and regain control of your finances by becoming actively involved and finding out as much as you can about the foreclosure process and how to avoid it.