- We have all seen the articles about foreclosures being on the rise, and predatory lenders being at the top of the list of shame...but the buyers need to stand up and take some responsibility for what they have gotten their selves into...I have put together what I call the "True ways to avoid foreclosure"
- Remember the old saying "If it sounds to good to be true, it probably is"? People who couldn't even qualify for a department store credit card were getting loans. Now with the changes in lending practices, these people are not able to secure a mortgage, lucky for them..But why would a person even attempt to buy a home if this is their case? Buyers need to be smart..If nobody will lend you money except this one guy over here..there is probably a reason why he is going to do it..YOU ARE BEING SET UP TO FAIL!!!
- Prioritize your Spending If you just bought a home, most likely it is a starter home, or a step up from that first home, you will have a bigger payment than what you are used to. Make sure you get used to this new payment before you decide to buy that new car, boat or what ever it is that you think you need. Don't think you need to keep up with what everyone else has, if you do you may end up with a lot less than what you started with. Always make sure that your house payment is your number one priority!! After your mortgage is paid, then pay everything else in order of importance. If you come up just a little short, it is a lot better to cancel your cable for a month or two, or defer your cell phone bill until the following pay day.
- Maybe it is time to cut loose of an asset This speaks for its self. If you have been laid off, or have an unexpected expense that is going to make it hard for you to come up with your house payment, sell your jet ski, or that extra car to store money to make your payment with until you get back to work.
- Find a way to bring in more money There are so many things out there that a person could do to bring in extra money. If you have a skill, advertise it!! Take that overtime when it is offered to you. Are you a stay at home mom? I know it may be hard for some women to swallow, but if you are a stay at home mom, there are many jobs that you could do and not lose that quality time with your children.
- Maybe it is time to sell your home If you are so far behind that there is no possible way you would ever get caught up, you sold your boat, you are working so much that you have no quality of life, maybe it is time to downsize. Even if you owe more than your home is worth, you can still sell. Contact your Realtor and they will tell you how.
There are many other ways a person can save their home. Not borrowing against your home to pay other bills, or not taking out a home equity loan, even keeping an emergency savings..there are so many ways to keep your most important asset.
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