With the down economy, money is probably tight and bills continue to pile up. Mortgage payments and other home loans may seem impossible to keep up with, so it is important to understand ways to stay away from foreclosure. It is amazing that with a bit of effort, a person can maintain good credit and retain the family home.
Here are a few tips that may help.
1. Take Home Loans Seriously.
When a person becomes unable to pay the mortgage or other home loans, it is necessary to call the bank or loan company immediately. No person should let pride stand in the way from asking for help when it is needed. After a person explains the situation, lenders will oftentimes explain ways that the issue can be solved. A person is usually surprised at how helpful these companies are and the number of options that are available. If the mortgage company is not willing to partake in a discussion, it may be wise to speak with an agency that specializes in housing counseling for further assistance.
2. Do Research.
Before entering a discussion with a lender, it is essential to review original loan documents. It is advised to make a list of other monthly expenses. If dealing with a counseling agency, these professionals may be able to find a way to work with a lender in a productive manner.
3. Understand All Possible Options.
Depending on how far behind a person is on mortgage payments, help may be needed in the short or long term. There are certain things that can be tried to repay missed payments. Sometimes lenders are willing to modify the terms of the mortgage. One final solution that most people consider not an option is selling the home to avoid future credit issues.
4. Do Not Veer Off Of The Path.
When the person absolutely wants to retain the home and protect credit, it is essential to make a plan and stick with it. It is vital to make house payments before paying other monthly bills. There may be areas where a person can cut expenses like getting rid of unnecessary services like a costly cell phone plan or cable.
5. Be Wary Of Scams.
When a person is in a low place, there are always people willing to take advantage of the situation. Many bogus mortgage assisting agencies exist which trick people and take money that cannot be spared. The best way to assure that scams are not involved, is to work alongside the original mortgage provider to resolve the situation.
Home loans and mortgage payments account for most of a person’s monthly expenses. No one wants to be forced out of a home, so it is essential to find a way to stay on regular payment schedule. The above tips are a few ways in which a person can avoid foreclosure. Prioritizing expenses and working with the mortgage lender is a solid plan to assure retaining the house along with good credit.
This is true. It’s very important that you speak to your lenders at the first sign of trouble of making timely payments. I spoke to mine and they actually worked out a less straining payment plan for me and I was able to survive with limited income for 6 months. I still haven’t fully recovered from my financial problems, but I’m getting there one step at a time.
My wife lost her job recently and our family budget’s been on the red ever since. We’re still fine and we still have our savings, but I’m in luck for having come across this article before troubles began. I have a bad habit of being too optimistic and I let things get out of hand when they could have been handled better. In this job market there’s no guarantee that my wife will get a job soon, so maybe right now is the best time to speak to my lenders about a reduced payment system for at least a short period of time.
Great advice here. All the points are important but avoiding scams should be something we’re all told about. In times where people are desperate to cover all their bases, it’s easy to fall victim. So ask for guidance before signing anything!
I, too, have heard lending institutions are willing to work with you if you think you may get behind on your mortgage payments. Foreclosure is a difficult and expensive process for them and they’d rather make that a last resort.