Stop Foreclosure (Part 4)

Life is not always easy. We hit road blocks, unexpected payments and times when things are so tough that we just don’t think there is a way out. Then if we throw losing our house in the mix, well that’s just plain old devastating. So it’s time to stop foreclosure. Now if money does become an issue there are certain priorities that we should adhere to. It’s really pretty simple. The three things that you need to focus on are food, housing and utilities. Food and utilities should be paid first and then the rest should be directed at your housing situation.

Time to make some hard decisions in order to stop foreclosure. They really shouldn’t be hard considering the effort being put forward is to save your home but as weird as it is many people have a tough time cutting out the luxuries that can help them stop foreclosure. Ok, no more eating at restaurants, get the cable cut off, and entertainment is definitely out for a while. If you have any stocks or bonds then this might be a good time to dip into them or getting rid of the second car is a widely used option. You have to understand that anything you can do to put some extra money n the bank at this time can be very beneficial in order to stop foreclosure.

Don’t stop paying your credit cards. However if you do find yourself in a little too deep you may want to call someone to help you get your bills at a manageable level. A credit counsellor may be able to help with different payment plans which could bring your monthly commitments lower. All these suggestions are a must in order to stop foreclosure.

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Avoid Foreclosure

Remember that after you buy a house you will always have maintenance and utilities so you have to be sure there is money left for these sort of expenses when you are figuring out how much you can afford for a mortgage. This is important to avoid foreclosure. Remember your payment needs to include interest, principal, insurance and taxes. This number should never be higher than 30% of your net income.

So now that you understand there are extra costs then you have to take very careful consideration when deciding if you can or cannot afford a new house. Another way to do a quick calculation is you should never buy a house that is more than 2.5 times your current yearly income. Just because you think you will get a raise doesn’t mean you will so don’t go in and take a loan on assumed money. If you feel buying a house is going to put stress on your financial situation then it’s quite simple. Don’t buy the house.

You want your lender to be your best friend. Not just someone pretending to be your friend but someone you feel really good about. You are going to want to talk to more than one lender to get a feel for the place you want to deal. This is also very important to avoid foreclosure. If you feel like your lender isn’t being upfront with you then how do you know they will be there for you in time of need.

Be sure you go over with your lender about all the hidden costs at the time of signing. There is going to be lawyer fees, transfer fees and all sort of good stuff. Make sure you know right to the penny. This way you are a step ahead in avoiding foreclosure by knowing exactly what things are going to cost you.

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Stop Foreclosure (Part 3)

If you feel like you are at rock bottom then it may be too late to ask yourself, should I call my bank? It’s important that as soon as you recognize that you may have some financial issues that you get a hold of your lender. Most people get scared and as soon as there is any sign of trouble they find all the excuses in the book to hide from the very people that can help them. If you are getting into a foreclosure situation then you absolutely need your lender on your side.

Something that is very important and you must remember is that the last thing your lender wants to do is take away your house. Believe it or not they are actually on your side. Foreclosure proceedings cost your lender a lot of money so no matter what you have been told this is the last thing they want to pursue as well. Most lenders will work with homeowners in order to keep your house from being foreclosed on. They usually have a variety of options they can pursue. One thing to know however is that it is very important to contact your lender early. The options you have severely decrease when you end up 2 or 3 payments behind.

The problem is that most people hang on to the feeling that things will turn around and everything will be ok. Listen closely. Asking for help may involve swallowing a bit of pride but believe me the alternatives are a lot harder on your pride.

So now that you have swallowed your pride it’s time to call your lender. The calling info can be found in several different places. Monthly mortgage statement, web links or just the phone book. I know dialling the number is difficult but once you have a voice on the other end everything will fall into place. Make sure you have all the information on hand that you will need like pay stubs and your other financial information. Explain the situation to the lender and make your situation as clear as possible.

Once you make the first call the others will be much easier. The problem isn’t going to disappear with one call. Your lender might also need you to fill out some forms so they can review the situation to see how they can handle your case.

You do need to know that if you fail to follow up on anything the lender asks of you then legally they are bound to start foreclosure proceedings. So not only are you losing your prize investment but now you would have all the added legal costs of a foreclosure. Once it gets to this point it definitely becomes a lot harder to keep your house.

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