The easiest way to avoid foreclosure is to never miss a payment in the first place, but it’s not always that easy. If you’ve been struggling to make your monthly mortgage payment, or paying it late on a regular basis, then you need to make changes in your monthly expenses as soon as possible.
Prioritizing Your Payments
The first step in saving money for your mortgage is prioritizing you monthly payments. The only real necessities are a roof over your head, food, water, and maybe electricity. I would argue electricity too, if it meant losing the home that it powers. Gas for the car may or may not be necessary, depending on how far you live from work or school. If riding a bike or using public transportation is possible, I would recommend selling your car and using alternative methods of transportation. If you are about to miss a house payment, then you need to make drastic changes as quickly as possible.
Seek Professional Help Immediately
Most people wait too long to find help and for many, it’s too late. Fine help as soon as you anticipate missing a payment. You may only need help from a mortgage broker to refinance, but a credit counseling agency or bankruptcy attorney may be able to help as well. If you are turned down for a mortgage refinance, then you might find help with a foreclosure specialist, who can help with a loan modification to lower your payments.
Have a big garage sale, or start listing your things on Ebay, because I guarantee that in a few months, you’ll need $200 more than you need your ipod! Every household has $1,000 of dollars worth of unnecessary items that could be sold to make payments. If there are items in your home that don’t get used on a daily basis or don’t contribute to providing income, then you should sell them.
Find A Second Job
Unless you’re already working 70 hours a week, you can find time for a second job. Even a part time job can provide significant income to help when times are tough. If you have children old enough to work, then send them to work too. If you explain the situation to them, I am sure they’ll be glad to contribute. It is much better to come together as a family and solve this problem now, because it’s only going to get worse once you miss a few more payments.
Don’t Expect Handouts
If you are under the impression that the government will bail you out if you miss payments, then think again. In fact, do not expect anyone to help you out of this situation. Friends and family may be available for moral support, but once you ask for money, things will completely change. Professional help is available, but it’s not free, so expect to either help yourself with good advice (available for free here) or by paying a professional to take care of things for you.
If you are about to miss a payment, then it’s time to decide if keeping your home is affordable, or if it’s time to find a more reasonable housing solution. If you want to keep your home, then seek help to lower your monthly bills or mortgage payments. It’s not easy asking for help, but it’s the first step to recovery and 100% free, so get started today!