How to Save Your Home from Foreclosure

The current economic crisis has affected all and sundry. Many people have lost their jobs, families have been facing dire times and stress related to financial reasons has never been higher amongst common people.

The situation has been really ugly for some who lost their homes to foreclosure. Some of them have been living in their family vans because they simply cannot afford to rent a house due to unemployment. It is a situation that no one wants to go through in their lives.

Unfortunately home foreclosures are a lot more common these days than one would like. Financial institutions are also insecure and want their money back as there have been too many bad debts for their liking.

If you are in a situation where you face a potential home foreclosure, you need to act fast now.

Instructions

  • 1

    Contact Your Lender

    The first thing you need to do is contact your lender and clarify the situation. Often lenders have options to facilitate in a situation when you are unable to pay your monthly instalment or are only able to pay it in part. Even if you are not provided with an alternative payment plan, you can get some extra time.

    Image Courtesy: mrlender.com

  • 2

    Monthly Instalment Should Be Your Priority

    If you are facing difficult times, you will need to make paying off the monthly instalment for the home your priority. Cut down on other expenses, you can do with fewer minutes on your cell phone and without your cable but you need to have your home. Cut corners on the expenses and make sure that you are able to pay the mortgage of your home on time.

    Image Courtesy: salesmomsnetwork.com

  • 3

    Re-Finance

    It’s a good option especially if you have yet to miss payments and know that you will do so soon. This will get you a lower rate and possibly some cash as well which can get you sometime to get back on your feet.

    Image Courtesy: horizoncapitalcorp.com

  • 4

    Sell Other Assets

    If nothing seems to be working, you may consider some assets that you can later reacquire or can get substitute. It’s not an ideal solution but it can bail you out. If you have a car worth 20 grand, you can sell it off and buy a decent ride worth around $5000. The difference will help you pay the monthly mortgage for the next few months and will provide you with some time to stabilise and find a permanent solution.

    Image Courtesy: theintelhub.com

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