Although the situation isn’t as bleak as it was 10 years ago, when there was a record 1.6 million home foreclosures in the country, the U.S. real estate market is still volatile. Last year alone, there were almost 300,000 foreclosures in the country.
Despite your best efforts to prevent it, you may be concerned that current events may be leading to you foreclosing your home in the near future. How can you prevent such an event from happening? Here are 4 tips you can follow if you want to stave off a foreclosure.
Map out Your Finances
The best way to avoid getting foreclosed is to keep updated with your payments. And the best way to do that is to be aware of your finances intimately. Having a complete map of how much you are earning and where you are putting this money in will be invaluable in diverting more finances to your mortgage payments.
For example, if you are one source of income in your family, collate how many other revenue streams are available to you all. Perhaps one of your family members is doing freelance work? Once you have an accurate picture of how much you are earning, you can get to work redistributing the money to efforts. If you can tighten your budget to keep up with mortgage payments, this finance map is the best way to find where you can do so.
Know Your Rights
Proper laws and owner’s rights can be a tricky area to navigate. However, the law exists to protect you and people in similar positions. If you are unsure of your rights or would like more clarification regarding the contracts you’ve agreed to, it’s best to contact an expert. Take a look at local foreclosure defense attorneys. Their help will be vital should you ever face a foreclosure. But before such time, knowing everything there is to know about your right can help you buy time to assemble your assets.
Catalogue Secondary Assets
Speaking of assets, before you are even in an actual state of foreclosure, you need to catalogue all your secondary assets in case the time comes when you need to sell them for payments.
Look at high-value assets that have good resale value and don’t depreciate quickly. Good secondary assets to consider for resale in the event of a foreclosure include any non-essential real estate you have, secondary cars in good working condition, jewelry, and stock options.
Make sure you can afford to lose the properties you’re going to sell. For example, don’t sell your only car if it’s key to getting to your job or plays into your source of income.
Work with Your Lender
Finally, don’t succumb to the temptation to ignore messages from your mortgage company or bank. Many people often avoid phone calls and visits from people reminding them of their dues or back payments. However, banks and other financial institutions are more interested in helping you pay off your mortgages and avoid foreclosure than ensuring it happens.
Work with your bank to restructure your loan or explore other options will be far more helpful in keeping you out of financial hot water than avoiding the problem.
Keeping a roof over your head is always a primary concern, especially if you have a family. With these tips, you can make it easier to keep your home.