Everyday the foreclosure statistics are climbing at an alarming rate. According to realtytrac.com, 1 in every 259 homes in are in foreclosure in California alone! Factors such as job loss, decrease in income, and escalating interest variable rates are just some of the reasons homeowners are at risk of losing their houses. Here are four simple tips to help homeowners avoid foreclosure and not become another statistic.

  1. Contact your lender as soon as there’s a problem. If you’ve lost your job or had another financial set back, don’t sit on your hands and wait for the past due notices to come pouring in. Contact your lender immediately. According to www.hud.gov, “Lenders have workout options to help you keep your home. However, these options work best when your loan is only one or two payments behind. The farther behind you are on your payments, the fewer options are available.”
  2. Explore foreclosure prevention options. If you passively ignore your foreclosure notices and just hope they will go away, unfortunately they’ll keep coming in. There are a number of HUD approved programs available to help homeowners keep their house. From the Making Home Affordable Plan to the Homeowner Preservation Foundation. If you don’t explore your options, you won’t make progress.
  3. Change your spending habits. You wouldn’t think that someone very close to losing their home would be purchasing a brand new car and toting around the hottest new Iphone, but unfortunately for many that is the case. Every cent spent on unnecessary items is less money to contribute to saving your house, so cancel that gym membership and work out at home!
  4. Sell what you can. When you don’t have enough to pay your mortgage you can always contribute to your finances. Have a garage sale and sell items that you do not need to bring in extra income. (i.e. Is a TV in every room really a necessity when you are fighting to keep the very place that houses all those TV’s?) It isn’t fun, but homeowners are realizing now more than ever that personal sacrifices will only help increase their chances of saving their home from foreclosure.
Photo courtesy of www.prlog.org

Photo courtesy of www.prlog.org

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This is filed under Foreclosures.


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