The recession in the economy has hit Americans incredibly hard. Job losses increase on a daily basis and more and more homeowners are finding their dreams diminishing. Foreclosures are on the rise and in some areas, they are skyrocketing. More and more households are desperately seeking ways to prevent foreclosure. Other households are finding that their current status in life doesnt allow for them to prevent foreclosure; they are being forced to give up on the American dream.
However, there are new laws and programs that have gone into effect that can help homeowners prevent foreclosure. More resources are available than ever before. The most important thing to realize is that you are not alone in your woes. Facing foreclosure is probably one of the most humbling and terrifying experiences you will ever endure. Knowing that you are not alone can alleviate some of the fears of being the only one but it doesnt make it any easier to overcome. There are tons of reasons for why you may be facing foreclosure which typically focus around a change in income. That change in income is not allowing you to be able to comfortably pay your mortgage and that, of course, doesnt make the lender very happy.
There are quite a few ways that you can prevent foreclosure and the most important thing that you can do is understand what those ways are and how to make them work for your situation. While your monthly mortgage payment is probably your highest payment that needs to be written each month, it should be the top priority. If you have to fall behind in other debts just to make paying your mortgage possible, do what needs to be done. Your credit cards are not as important as your mortgage. They are not secured debts. Your mortgage is secured. If you cannot pay your mortgage, you will lose your home. In order to take baby steps toward being able to prevent foreclosure, you need to make some drastic financial changes. Get rid of what is not necessary get rid of your household cable for your TV. Cut your grocery list in half if possible. Sit down and itemize every single thing that you spend your money on. Do everything that you can do to be able to pay your mortgage.
However, there are times that it is simply not possible to make your mortgage payments and you know that the lender will be hounding you any moment. You can prevent foreclosure, you really can. From the very first moment that you know that you will struggle to pay your mortgage, get in touch with your lender. The banks dont want your house; they want you to keep your home. See if your lender has any options for you whether it be a forbearance period, a modification loan or anything that they can suggest. Ignoring the problem is the worst thing that you can do. Putting aside your pride and asking for assistance is the best way to prevent foreclosure. You may want to contact an attorney if youre already getting warnings and correspondence in the mail from your lender. Contact a HUD-approved counseling agency. They will listen to you, make suggestions and walk you through a very difficult and emotional time. They can help to even represent you if necessary. Their highly trained counselors could be
instrumental in your steps to prevent foreclosure.
The most important things to keep in mind when thinking about how to prevent foreclosure is prioritizing your lifestyle and finances and maintaining excellent communication. Dont ignore the problem; it will not go away. Ignoring it could simply make it worse. Seek assistance and tackle the problem immediately. You may find out that maintaining the American dream is a possibility afterall.