It is no longer news that because of the economics meltdown in the recent times, many more Americans than ever before are finding it difficult to pay the home loan notes they signed several years ago, or recently for some. Due to the boom in the housing seller’s market a few years back which gave buyers an ever-increasing confidence in buying real estate as an investment. For the fact that they watched the price of houses skyrocket and felt that their home’s value would never fall and would only be on the increase. Now reverse is the case, many of those same people are looking for advice/ways on how to avoid home foreclosure.
In addition to the exorbitant prices many homeowners paid for their houses during the real estate boom that the nation underwent about five years ago or so, the ‘market value” of their homes was pretty exorbitant also. Many of those homeowners decided to cash in on the value of their homes by taking out second mortgages or lines of equity based on the high values associated with real estate at the time. Now, some of them are looking for advice about how to avoid home foreclosure. But there will always be a way out, and here comes the question…
How can I avoid home foreclosure? Below I have given you 10 solid things to do to avoid foreclosure.
Do not default in your monthly amortization, even if it mean s doing without other things, like forfeiting going to lunch frequently you can resort to eating rice and beans for the main time till you have settle all your debts.
Whenever you defaulted in your payment do not reject the lender’s calls or letters, if you do its only worsen the situation and push your lender to begin foreclosure.
Seek professional advice, there are groups and companies whose duty is to help you evaluate your situation, they can even represent you, some are NGO (Non Profit Organization) while some are profit oriented.
Understand the language of your original home loan and any subsequent loans you took out on your home. Some mortgages have helpful information about how to avoid home foreclosure attached to, or included in, the mortgage.
Meet a good housing counselor at HUD (Housing and Urban Development).
Make your mortgage payment a priority by paying your mortgage amortization first before any other payments like that of credit card.
Increase your income. You or any member of your family can get a second job, if you are the type that always buy clothes and other things on impulse it is time to reconsider your way and reduce your expenses.
Look into loss mitigation. HUD can help you with this, as can other experienced professionals.
Go for loan modification, let me say, most of the lenders don’t like foreclosure on a property they prefer loan modification, I have dealt extensively on loan modification you can check my site archives for how to write an effective letter for loan modification
If all the above steps did not work out you can try putting up your house for sale at least to save the situation
If you diligently follow the above ten expert tips on “how to avoid home foreclosure and save your home” you will surely prevent your precious home from foreclosure.