Hundreds of thousands of families have been displaced from their homes in recent years as the wave of the foreclosure crisis swept the nation. While some were fortunate enough to defend against the loss of their homes, others have not been so lucky. When it comes to the fight against foreclosure people have tried everything from protests, to lawsuits to loans. Here is what you need to know about saving your home from the threat of foreclosure:
Buy within reason – a common mistake people often make when buying a house is purchasing a home they are approved for in a loan value, rather than what that home will cost each month. Don’t buy a home at the top of your budget or loan approval, but determine what monthly payment you can afford to pay each month before you start shopping.
Manage your money – although foreclosure doesn’t typically strike simply due to poor money management, not having an adequate savings account can make a temporary financial hardship worse. It is a good idea to have at least three months or more worth of your mortgage payment set aside in a savings account for the unexpected.
Don’t wait – one of the biggest mistakes people make when needing help with their mortgage debt is waiting too long. The average lender is far more likely to work with you if you contact them before missing a payment. As soon as money becomes tight, contact your lender to discuss your options.
Know your options – many people rely solely on their lender for help without being prepared for the process. Do some research on loan modifications, short sales and forbearance agreements before discussing your options with your lender. Preparation is the key to a successful negotiation.
Seek counsel – while it is possible to negotiate a deal with your lender, there is something to be gained by working with a professional. A New Port Richey bankruptcy attorney can help you review your options, negotiate with your lender and stop the risk of foreclosure.