It’s no secret that financial situations often change and sometimes bad fortune may hit, leaving you in a despicable financial situation. If you have a mortgage on your property, this means your property will likely be foreclosed. Nevertheless, there are some preventative steps you can take to prevent your property from being foreclosed and here are some tips on those steps.
1. Get in touch with your lender
The mistake I see most people make when they have financial issues is that they don’t take any proactive action to engage their lenders before things go out of hand. Well, firstly, you don’t have to be afraid to get in touch with your lender so that you can discuss your issues. Communication with your lender will not prompt them to come and foreclose your home immediately. If you are in a financial turmoil, you could ask your lender to temporarily adjust your loan terms so that you can make flexible payments that won’t strain you whilst you get back on your feet.
2. Don’t ignore the problem
Sometimes when people are unable to make their mortgage payments on time, they, in most cases ignore the problem which leads them to fall behind on their payments. When such happens, it becomes increasingly difficult to reinstate all the payments when the lender starts demanding their money back often leading to foreclosure. So, once you have a financial problem, it’s important for you to begin taking positive steps to deal with your challenge on of which is stated above, engaging your lender.
3. Know your rights
There are a lot of people who lost their really valuable properties simply because they didn’t understand their rights. When you are given a loan, the first step before choosing and moving into your property is to go through your loan documents carefully to understand your options. Going through the documents will also give you valuable insights on what the lender may do if you don’t make your payments on time. If you can’t understand the documents by yourself, try engaging a real estate attorney who can interpret the language of the documents in a way that you will likely understand.
4. Prioritize Spending
In order of priority, good financial planners would tell you that the first item of your priority list when it comes to spending is you and your family’s healthcare. After healthcare, the 2nd most important thing is housing. If you are in a financial mess and looking for solutions on how you can prevent a foreclosure, you should start by looking at how you are spending money. If done well, you could identify financial loopholes that you can plug in order to divert the money to cover your monthly mortgage payments. In a financial turmoil, you have to avoid things like cable tv subscriptions and expensive memberships that are unnecessary.
5. Sell off your assets
Although I used the word assets in the heading above, I think the accurate word would be, “liabilities’. When selling off your assets, do not start by going for the major items like your second car, instead, start by looking in your home and garage and auction off those items and appliances that were no longer being used by anyone. Doing so would mean that you’d be killing two birds with one stone because in addition to making some extra bucks, you’d also be positively getting rid of the clutter in your home. If the money you make from selling off your assets is not enough, you then should start considering to sell off your second car if you have one.
6. Engage a foreclosure prevention company
This tip is our personal favorite because it works every time. Foreclosure prevention companies like Sillemon Real Estate & Investment Group can help you get out of your financial mess and prevent a foreclosure. Personally, as a company, when you are facing a foreclosure, we help you by advancing sums necessary to bring you as the seller, out of default so they may sell your property without the added pressure of a Foreclosure Sale. This means you’d have more time on your hands to sell off your property on a price that is determined by you which in turn decreases the risk of you, experiencing any loses.
If you know of any foreclosure prevention tips, kindly feel free to share them with us so that we may discuss and help each other prevent foreclosures.
