08.16.08
5 Things NOT to do to avoid Foreclosure on your home !
1. Do NOT ignore the lender.
Most Lenders DO appreciate your communication with them if you are
having problems keeping up with your monthly payment especially when
your problems stem from bonafide reasons like the loss of a job or
health issues. Banks really do want to help you out since they want your
payment not your house. If you can’t deal with talking with creditors there
are also professional foreclosure negotiators available for you to use.
2. Do NOT stop making your monthly mortgage payments.
Let’s say you miss a payment and the second months payment is due.
If you have the money for a payment during the middle of the second
month don’t refrain from sending a payment in because you owe two
payments total. Send in the one payment because if the lender sees
you are showing an effort to pay then foreclosure proceedings will be
delayed. If you can keep in contact with the lender then you can
delay until you can get on track.
3. Do NOT spend your mortgage payment on other bills.
You may be getting frequent calls from other creditors for credit
card payments or other ‘non-essential’ bills but when it really comes
down to it you need to decide if you want to save your credit
cards or your house. Spreading out your payments on several bills may
hurt you in the long run because of accruing multiple monthly payments
on your mortgage.
4. Do NOT fail to have a Home Equity Line of Credit in place !
Before you start having any payment problems at all make sure you set up
an equity line of credit. If you need a bunch of cash to stave off
foreclosure with a huge payment then this will be something that may save you!
5. Do NOT fail to accrue savings for an emergency!
Most people have a problem with putting money away for savings but if
you put a little away with each paycheck then over time that savings may
come in handy when you need it most to save your house.
This technique requires a lot of discipline but has long term benefits!
