HOW CAN YOU PREVENT FORECLOSURE?
Foreclosure is a process that every homeowner must take seriously. Luckily, you can almost always do things to help you prevent it from happening. Open the letters your lender is sending you and see where you are at in the process. Make sure you find your mortgage paperwork and read them thoroughly to know what to expect when you don’t make your payments on time. If they have just begun to issue notices of non-payment, they haven’t issued the foreclosure yet. But if you ignore the pending legal action letters, that is no excuse in court. However, you may still have time to handle this situation and avoid a foreclosure on your credit report.
The first thing that you have to do is to cooperate with the government. You have to know the state laws and the timeframe of the foreclosure so you can compare them with your lender’s letters, so you can know how much time you have to secure your exit strategy.
One of the websites that you might want to consider checking is the page of The Federal Government’s Housing of Urban Development Department, as they have several detailed programs that can educate you about foreclosure and how to get away from it.
You can also find several counseling options to help you understand the financial situation you’re in and decide on the option that will work the best for you and the condition you are in.
Look at Your Finances
Another good way to avoid foreclosure is to take a long and realistic look at your finances and expenses. Skip wasting money on anything that isn’t necessary, such as cable or internet packages and expensive phone plans. Make a budget plan so you can see how much you are spending on basic needs and important expenses. If it’s needed, get a second job, do whatever you can to get more money so you can help yourself pay off debt. You can always sell some of the more expensive pieces of furniture or your car, but keep in mind that this would only make a one-time earning and that, without a financial plan, you can easily once again find yourself in debt.
Rent Your Apartment
If you want to be creative while also earning some money, another idea is to rent your apartment out. This means that you should calculate and plan wisely, as you will have to find someplace else to live, which will also cost you cash. If you’ve done the math the right way, you will have enough money from the rent to pay the expenses of your new and temporary living place, and to pay off your debt and future mortgages as well.
If this is too extreme for you, you can always rearrange your living place and invite a roommate to live with you and pay the rent, which will be the income you will pay off your mortgages. This option has its problems, but at least you’ll save your house from foreclosure.
Sell it to Real Estate Investor
The last option you have to prevent the foreclosure of your home is to sell it to a property investor before the pre-foreclosure process ends, as they are the only ones who can guarantee a fast and scam-free sale of your house.