If foreclosure is narrowing down on you, don’t run away! Figure out where you’re at in the foreclosure process. Be aware of what to expect when missing payments on your mortgage, so be sure you read your documents! If you’ve just received your notice of missed payments, they have yet to issue the foreclosure. Ignoring an action letter will not hold up in court, so make sure you acknowledge the letter! Be sure to take care of it straight away, you could still have time to potentially avoid having a foreclosure on your credit report.
Work With The Government
Reach out to your state to figure out the foreclosure time frame you’re working with. Knowing this information, while being aware of the steps of foreclosure, can help you draw a comparison with the letters you receive from your lenders. Knowing all this can help you determine how fast you need to proceed with things in order to lock in your exit strategy. Looking into the Federal Government’s Housing of Urban Development can be beneficial. Their department provides a handful of programs that could offer you a helping hand. HUD could also help with counseling purposes. They provide you with help in understanding your financial situation and help in exploring your options.
As simple as it sounds, a way to avoid foreclosure is taking the time to look at your personal finances. Come up with a financial plan that will accommodate your basic needs. Try to avoid spending money on unnecessary things and wants. Making smaller lifestyle changes can also help, such as eating at home instead of going out to eat every day. Finding other ways to make extra income can be something to consider. You may even want to look at some of your possessions and ask yourself if you really want them? If not, try selling them and making a bit of extra cash on the side. These are just a few options and ideas that can help you in your financial situation.
Rent It Out
Get financially creative and avoid foreclosure by renting out your home to someone else! The rent they pay can easily be the payments made to your mortgage and insurance payments. This gives you the chance to find a more affordable place to live in. You could also consider finding a roommate and renting out a room or two of yours. Just be aware that renting out your home will come with its own sum of responsibilities you will have to attend to.
Nip foreclosure in the bud with a short sale! There are tons of investors looking for a short sale on the market. Banks do not want to own your home, they will typically accept an offer close to the loan principal, even when the house is worth more than the remainder. Short sales are great investment opportunities and can be your way out!