If you are looking to stop foreclosure on you home, I’m sure you have read a lot of articles on what you should do, but what about the things you should NOT do? This article will tell you all about the steps you should avoid if you really want to stop that foreclosure. It is important to know what to do and also viable to know what not to do, if you want to quickly and smoothly save your home from foreclosure.
Avoid These Things If You Want To Avoid Foreclosure
1. Have no money saved up for an emergency. Before you even buy a home, you should be able to afford the mortgage and still be able to stash some of your paycheck away for a rainy day. You never know when you may loose your job or loose some of your income. This is why it is a good idea not to get in a mortgage payment that doesn’t allow for you to have some savings account growing.
It is important to try and build your account up enough so you would have at least six months of mortgage payments saved up. This may seem like a high amount, but it is worth going without other material things until you have your savings built up. If you have to give up a yearly vacation to do so it will be worth if you ever run into a time when you need that money to save your home.
2. Have no Home Equity Line of Credit in place. Most homeowners that are facing foreclosure need money quite quickly, if the have no savings, the best route to get it is in their home equity line of credit. At least 90% of foreclosure could be delayed or avoided all together with home equity lines of credit.
When you purchase you home you can usually set up an equity credit line for no cost and with low rates. Most the time you will pay nothing each month, if you do not access the line. Most people do not take advantage of the home equity line of credit, because they don’t think they will ever need it and when they actually do it may not be available to them. If you are facing foreclosure, job loss and financial hardship, obtaining a loan will be much more difficult, then if you would have done before you even missed a mortgage payment.
3. Do not miss a mortgage payment. This may seem like an obvious one, but then most foreclosures come from people missing one mortgage payment. If you are getting down to the end of the month and you know your going to be short on money, take a look at you bills and see which ones you can put off. Missing a credit card payment or utility payment may be less of issue then skipping out on your mortgage payment.
Most people, who miss a mortgage payment, think they can just make it up or it will only be one time that it happens. This usually isn’t true though one time turns into two times and the three times, before you know it you have a foreclosure notice.
Also one you miss one mortgage payment, your credit with significantly be lowered and may stop you from getting the loan that you needed to stop foreclosure in the future. Although there are foreclosure prevention loans, how much you can borrow will be lowered each time you credit score decreases.
Hopefully some of these tips will give you some new ideas on how to prevent foreclosure before it even begins. Read on to article part 2, for more ideas and hints to avoid foreclosure.
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