If you ignore your financial problems, they won’t go away. Be proactive when facing foreclosure and you could avoid it.
Foreclosure is scary, but it can be avoided. If your mortgage payments are too high or your income is too low, foreclosure isn’t your only option. Consider these 5 alternatives to foreclosure that might work for you:
1. Ask for forbearance and make the payments later. If you are stuck in a temporary jam, you can try calling your lender and asking for forbearance, which means that the lender will give you a few more months to catch up on your payments.
2. Seek out a loan modification or refinance. This is a great option, especially if your home is not underwater. New government rules are also creating more opportunities for people with underwater mortgages to refinance, such as the HARP Program.
Click here to see more alternatives.
Remember, the most important thing you can do in a situation like this is to be proactive.
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blog and CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investor
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