Prevent Foreclosure

We all want to try and make when something bad like home foreclosure happens to an individual or a family. 

“It was that adjustable rate” or “I lost my job” or “I just have too many bills”

These are all real life excuses but in the end just excuses to your lender or banker. As a homeowner, father, or mother you have to see ahead of the next turn and know when to make an adjustment to our personal finances before going into foreclosure. Let’s take these three common excuses above and break them down. Could foreclosure of been prevented when a mortgage rate adjust, a job is lost or the bills get to be too much. 

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A common scenario with many home foreclosure victims is the adjustment of an ARM or Adjustable Rate Mortgage. A mortgage payment that stays fixed for a few years and adjusts, sometimes increasing the rate as much as 40%. This throws the entire home budget out of whack and there is no money to pay this increase. Mortgage payments start becoming late and eventually you are behind on your mortgage.

This creates a snowball effect and many homeowners find themselves 1, 2 or even 3 months behind with no option and a lender that is not flexible. 

Prevent foreclosure by knowing the facts and planning ahead. You have to educate your self on your mortgage when it adjusts and what options you have. Keep your credit history clean and better your financial situation so you can refinance your mortgage before it adjusts to prevent foreclosure.

Next we look at Debt and the accumulation of massive household bills. Americans have a bad habit of living beyond their means. Many homeowners live paycheck to paycheck and still find a way to convince themselves that they need a new car or other high ticket item that creates a large monthly expense.
This is common for new homeowners that finally achieve homeownership. They buy a new car right after buying their first home and do not plan for taxes, repairs, HOA fees, upgrades, lawn upkeep, exterminators, and higher utility bills. Within 6 months they are literally hanging by a thread with mortgage payments being sent in late and other bills not getting paid at all.

Prevent foreclosure by budgeting and living within your income. Set a family budget and live by it. Do not get caught up it what the neighbors have, drive, or wear. You are responsible for you and your home will go into foreclosure fast if you do not manage your money. Owning a home is the best thing you can do to increase your wealth. It may take several years but you home is a gateway to wealth.

Losing a job is a very hard obstacle to overcome and the cause of many foreclosures in the US. Job loss is at historic highs and there seems to be no relief in site.

This is all about preparing, planning and seeing beyond your current situation. Anyone can lose a job, even large banks and mortgage lenders are closing their doors with out notice. It is all about knowing you are not resistant to job loss and it can and may happen to you at anytime. You must save and put in place securities or insurance that protects you. Here are some below.

- Disability insurance may cost $30 - $50 a month but if you lost your job due to an injury then you may be able to maintain your life.

 - Credit card insurance can pay your payments should you become unemployed.

 - Savings. Can not say enough about savings. You should work your hardest to have a three month reserve in your savings account should you lose your job.

Home foreclosure is devastating, but a reality. To prevent foreclosure you have to plan and have safeguards in place. Do not let your guard down and always know that if you have a plan in place you will increase your chances of foreclosure recovery.

Prevent foreclosure with loan modification services by MyLoanSavers.com. Receive a free consultation on how you can save your home from foreclosure, remove late mortgage payments and lower your current rate or payment.