As one of the most expensive things you’ll purchase in your lifetime, the cost of buying a house goes well beyond the purchase price. Oftentimes you’ll also need to account for the cost of furnishing your home, doing repairs, paying HOA fees, and more. If you’re not careful, it can quickly feel like you’ve bitten off more than you can chew.
If you’re a homeowner who’s going through financial problems and you’re worried about facing foreclosure, we’re here to help. Read these tips for homeowners on how to prevent foreclosure so you can stay in your home.
Be Honest With Yourself
When you’re going through a difficult time, it’s normal (and often feels easier) to pretend like nothing is wrong. But ultimately, ignoring the problem will only lead to more difficulties down the road as you get further behind on your payments. Instead, be honest with yourself and recognize when it’s time to take action.
Communicate With Your Lender
Make sure that you open every single piece of mail you get from your lender. As you start to get behind on your payments, these pieces of mail may include foreclosure prevention options to help you stay in your home. If you continue to fall behind on your payments, you may start to get notices about pending legal action. If you ignore them, that won’t be seen as a valid excuse in court.
You should also take the initiative to reach out to your lender when you’re having trouble making payments on time. They don’t want you to lose your house and they may have resources available to help you through this difficult time.
Look for Options Available to You
Fortunately, you don’t have to face potential foreclosure alone. There are resources available to you to help you better understand the law and your rights. Some organizations can even help you organize your finances or help you negotiate with your lender.
Check out the Homeowner Protection Alliance to learn more about how they can help you.
Know Your Rights
It’s also a good idea to take a closer look at your mortgage documents. Be sure to carefully read through them so you understand what your lender can legally do if you no longer make your payments. You should also do some research about local foreclosure laws in your area, as these can differ from state to state.
Re-Prioritize Your Spending
Finally, take a long, hard look at your budget. Aside from spending money on your own healthcare, paying for your house should be one of your top priorities. Try to figure out where your money is being spent. Is there anything you can cut out to free up more money for your mortgage?
Try to look for non-necessities that you can eliminate until you can get back on track like cable TV, expensive dinners out, etc.
Remember These Foreclosure Tips for Homeowners
Now that you’ve read through these foreclosure tips for homeowners, we hope you have a better sense of what to do when you can no longer make your house payments. While it may be uncomfortable, the best thing to do is face it head-on and use the resources available to you.
If you’d like to read more home and lifestyle content like this, be sure to browse through our other articles before you go.