| If you have a home and having trouble to hold it, | | | | with your broker, banker and lender. |
| you could be facing foreclosure. If you are in the | | | | 3. HUD housing counsellor can be contacted as |
| marketing of buying a home -- congratulations! | | | | they have a lot of knowledge and might show |
| You could make a fantastic bargain as many | | | | you additional ways to avoid that the banks |
| houses are being sold under market value. Now is | | | | foreclosing your homes. |
| the time to achieve the American dream of | | | | 4.Set-up a budget is the next important thing. |
| home ownership. However, this dream has turned | | | | Work out where you can save and control your |
| into a nightmare for many Americans and | | | | spending. Show your new budget to your bank or |
| foreclosure is at an all time high. The current | | | | lender. It clearly demonstrates that you make an |
| subprime mortgage crisis in the housing and credit | | | | effort to keep your home. |
| sector has already resulted in millions of families to | | | | 5. Do you have any other assets? Car, Boat, etc? |
| lose their homes to foreclosure and eviction. The | | | | You could easily cash in on those additional luxury |
| good news is that you can avoid foreclosure if | | | | items and use the equity in there. The saving |
| you act right in time. | | | | reserves can give you a few month of time to |
| First you need to do your homework and learn | | | | breathe. |
| everything you can about home ownership, home | | | | 6. Avoid credit card debts. It is strongly |
| purchasing, mortgage financing etc. This is a lot to | | | | recommended that you pay off your credit card |
| learn but it will pay off on the long run. You need | | | | debts each month to keep your balance below |
| to understand all the costs with purchasing a | | | | your credit limit. Lenders look very closely to your |
| house and even more if you want to sell. Here | | | | credit card balance and if they see more debts |
| are 10 simple but important steps you can do to | | | | there they are less likely to be flexible with your |
| avoid foreclosure. | | | | mortgage. |
| 1. Do not overborrow when you buy the house in | | | | 7. Avoid any personal loans or other credits. If |
| the first place. To many people with huge | | | | you already have accumulated personal debt pay |
| mortgages simply cannot afford the repayments. | | | | it off as quickly as you can. |
| As a general rule of thumb your monthly | | | | 8. Get familiar with your rights. Even when it |
| repayments should not exceed 28% of your | | | | appears like an incredible complicated task, it will |
| current income. | | | | be worth to study the mortgage laws. You will be |
| 2. Contact your lender immediately if you think | | | | surprised what your rights are. |
| you have problems affording the repayments. | | | | So, there are possibilities. You just have to get up |
| Most of the lenders are open to discuss different | | | | and do something. If you leave everything to the |
| financial possibilities and if they see you are really | | | | last minute then are foreclosure is likely to |
| interested in avoiding foreclosure they will listen. | | | | happen. But if you get up right in time, get |
| Ask your lender for refinance, debt forgiveness, | | | | educated and talk to your lender you might avoid |
| repayment plan or even a partial claim. There are | | | | foreclosure altogether. |
| more options available and it is worth discussing it | | | | |