Top 10 Ways To Avoid A Mortgage Mishap
With the recent economic punch in the gut the nation is experiencing, handling our mortgages seem to be a little difficult than before. Due to layoffs and downsizings, many people have either lost their jobs or have taken big pay cuts, forcing some to fall back on their mortgage payments. The F-word is a scary thing at this point, but there are ways to avoid a foreclosure on your home. Here are a few ways to avoid or get yourself out of a mortgage mess!
- To ensure that you have a sufficient amount of cash to continue paying on your mortgage loan in case of a financial crisis, try to build an emergency fund. Preserve some cash from your paychecks into an emergency fund.
- Try cutting down your expenses. If you are enduring some type of financial hardship, figure out ways to minimize your spending.
- Cash out some of your assets, such as stocks, or your savings account. If you have invested in some personal property, take advantage of its cash value.
- If you are one of those hard-working individuals who took a pay cut, opt for working a part time job to supplement your primary job.
- Seek a housing counselor for financial advice. There are many FHA-approved counselors that can provide you with information about programs, assistance, and other services near you.
- There are also housing non-profit organizations from which you could seek financial advice, such as the HOPE national help line. They have counselors that can help you analyze your situation and the necessary steps to get out of your mortgage crisis.
- Try to refinance your existing mortgage loan. If you have enough equity in your home and you satisfy your mortgage lender’s guidelines, then this may be the option for you.
- Seek a forbearance. With a forbearance, your lender may reduce your payment amount, or even suspend it for a while, to help you get back on track.
- You may opt for a reinstatement. With this, the lender may be willing to accept the entire amount you are behind as a single payment within a certain date. Afterwards, you can continue with the remaining amounts monthly.
- Loan modification is another way you can avoid foreclosure. This involves an agreement between you and the mortgage company modifying the original terms and conditions of your loan so that you can afford to pay.