Do you own your own home or business? If you have a mortgage, and you are working, struggling to survive from paycheck to paycheck you are not alone. There are millions just like you were are in jeopardy of losing their home, because of foreclosure. Foreclosure is when one is behind on the mortgage payment, when you miss two or more payments to the financing company and the bank decides to take your home from you.
Foreclosure is going to wreck your credit, and it is going to leave you homeless. You will have to move out and to another place to live, and sometimes you can even end up owning additional money to the bank even after they take your home or business. If you are unable to pay your monthly payments, you need to find a way to get your finances back on track, to catch up on those payments, and to keep your home.
To get your personal finances back on track you can do a few things. First, if you have already received a letter from the bank about foreclosure you should call the bank. Find out if you can set up any payments to avoid foreclosure. Ask if there is anything you can put up against the house to avoid losing your house. Foreclosures are not something that the bank or financing company likes to do, but must do in the case of your non payment. If you have a retirement account, if you have CD’s or any type of savings this could be the time it is going to pull you out of trouble and for you to avoid foreclosure.
If you have nothing you can fall back on, and the bank states there is nothing you can do to avoid foreclosure you need to get moving on a back up plan. You need to find a place to live, and for your family to move. You need to get out of the house that is being foreclosed, and you need to take with you the stuff you can before the house is locked up by the foreclosing company. The foreclosure of your home mortgage, can often times include the sale of all your personal items to help the bank recoup some of their money they lost on your mortgage. The foreclosure of your home is going to cost the bank money, in interest, payments, and more money in the cost of having to resell your home, which is why items in the home are often auctioned off by the bank.
A foreclosure process is actually quite a long one. If you have missed one payment on your home mortgage loan, you will receive notification by the bank of your missing that payment. If you miss more payments, the bank will begin calling your home. The foreclosure process is going to start. You will not have more than three months, generally, before the foreclosure process begins not only to affect your credit, but also where you live, the items that you own, and your ability to obtain any type of help in resolving the matter.
To avoid foreclosure on your home, get a second job. Cut back on the money that you spend when you are out on the town. Avoid spending money on things such as a cell phone, the car, television shows, extra activities, gifts and presents, avoid spending money that is not being spent on your home. Catching up on your mortgage payments for your home is something you must do to avoid foreclosure by the bank, and to avoid them taking your home.
Avoiding bankruptcy
Filing for bankruptcy is an extreme move and definitely not a fast fix. It’s an extended, painful proceeding with a major impact on your social standing and you’re unlikely to be able to get any kind of credit for up to ten years afterwards.
Even so bankruptcies are rising. Out of stupidity or ignorance more people seem to be using bankruptcy as a prime way out, instead of a final resort. Before you consider it, be sure to examine alternatives.
Try To Reorganise Your Debt
If you haven’t tried debt consolidation or negotiation, you truly ought. Sure, you’ll have to pay back your debts in due course, but surely that’s better than bankruptcy, isn’t it?
Sell What You Can
It’s much better to sell everything you own than it is to enter bankruptcy. Make a move to a smaller home. Sell your cars and catch the bus. Take a big, strong look at your life, and realise that there are only a few true ‘basics’, you can do without nearly everything.
Your home is probably full of a number of valuable possessions that you hardly ever use, so bite the bullet and be shut of them. Sell them! In simple terms, deduct your debt payments from your income and live the lifestyle of someone who earns that much.
You are bound to lose almost everything you own if you enter bankruptcy, so you may as well try to sell it yourself at a good price and avoid the bankruptcy issue altogether.
Work More Hours
Can you take extra time at work? Then do it. Going bankrupt is such an humiliation that you should at least try speaking to your boss and asking for a promotion or pay rise. The worst they can do is say no.
If you declare bankruptcy they’re going to find out soon enough about it anyway and they may be curious as to why you didn’t come and ask for their help. If you’re married and only one of you works, try to get a job for your partner you never know, they may end up enjoying it!
Utilize Powerful Threats
As a final resort one of the best things to do when you’re considering bankruptcy is to write a letter to absolutely everyone you owe cash to, to let them know. Make it an extremely clear threat – ‘if I can’t find a way to pay my debts then I am going to be pushed to file for bankruptcy’.
Almost all creditors would rather let you pay back a tiny part of what you owe than rather than have to try to get cash out of you after bankruptcy.
Understand Your Local Bankruptcy Laws
The Law for bankruptcy varies massively across the world. A number of countries will force you to give up everything you own to pay your creditors, in other countries you will at least get to retain your house and still other places you can declare
yourself bankrupt without any detrimental effect! Speak to a Lawyer! You may believe you can’t afford one, but many are willing to work for free for those who really need a lawyer but are unable to pay.
- Foreclosure Help
- Are you facing foreclosure on your home due to debt and an unpaid home loan? If you have experienced an intent to foreclose notice from your banking company, you may be feeling a great range of emotions. These emotions may take on on concern, anger, and sadness. Regardless of how you feel about the situation,
- Home Foreclosure – How to Stop It
- Your home loan is being foreclosed. That mortgage foreclosure is coming, and you either have to stop or avoid the foreclosure, or find a cousin to move in with. Your family is asking you if they need to pack their clothes and toys up for the move. You have about $200 in the bank, zero
- Foreclosure Assistance
- Are you facing foreclosure? If you have got an intent to foreclose detect from your banking company, you might be experiencing a great array of emotions.These emotions may include fright, anger, and sorrow. Irrespective of how you think about the situation, now is the time to take action. Depending on how soon you act, as
- Questions about a Loan Modification
- I had a lot of questions about a loan modification (also called a mortgage modification), so I have been busy getting some answers. For any of you guys that are having credit problems, falling behind on your home loan, or are just interested in learning about loan modifications, maybe the answers I found will help
- Help Stop Foreclosure
- You might be thinking or wondering about how to stop a foreclosure and what you can do that will help. If you’re a fair way behind in your monthly house payments, the lender might commence action to take the house back. Commonly, this operation is called foreclosure and the word strikes fear in to all
