• Don’t ignore the problem. It is easy to keep putting it off and to pretend it does not exist. However, it is best to face your problem. This is the same with any problem you face; first recognize the problem and get help. Yes with foreclosure you got a big problem.
• Contact your lender has soon as you realize you have a problem. Lenders prefer your money verses your home, call them they might just have a work out plan for you to keep your home.
• Open and respond to all mail or correspondent from your lender. The natural tendency is to adopt the attitude “out of sight out of mind”. However, I assure you not reading or responding to your mail is not going let your problem go away. The fact is your problem is your lenders problem.
• Know your mortgage rights. Each state their own foreclosure laws or procedures. Get educated about such laws and understand where you are in the process. Because time is of the utmost importance, be sure not to waste it, use every moment to learn or inform yourself of the options.
• Understand the foreclosure prevention options. The key in surviving a foreclosure process is to understand your options and execute them, never stand still and watch you house be taken away from you.
• Contact HUD -approved housing counselors. These organizations will help you understand your options; organize your financial presentation and help submit your loan modification. Some HUD approved counselors are funded by HUD and will have specific standard they have to meet. Those for profit companies can and will do a good job for you but in most case they charge a fee that can be a problem for most people in foreclosure.
• Prioritize your spending. Cut back where you have to in order to help save your home. Don’t start a new home improvement project which can require money you don’t have. Watch you budget closely reduce services that you can live without.
• Get an extra job. Can you or a member of your household get an extra job? Companies like Mary Kay or Prepaid legal offer part time or full time job presenting new products to your neighbor. These jobs can take 3-4 hours a day but pay very well if you stick with it.
• Sell extra stuff on EBY. Do you have extra stuff you would love to get rid of then why not put them on EBAY for sale? This is not necessary a job but just a way to clear the house of junk and help your get some additional cash in helping you prevent foreclosure.
• Reduce your bills. Start closing accounts such as credit cards, keep only the minimum. Analyze your credit and identify what will increase your scores and what will not. In the event you have to do a short sale, the possibilities of purchasing or renting a home still require a credit.
Friday, March 6, 2009
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