3 Monetary Steps to Take if You're Facing Foreclosure
Facing foreclosure can be an extremely scary time in your life. But sometimes your financial situation changes and you may not know which steps to take to make your monthly payments. This is especially true for the 32% of people who are looking to buy their first home. Fortunately, there are a few things you can try to save some extra money and make your payments on time. So if you're struggling financially and are worried about facing foreclosure, consider the following tips.
Cut Unnecessary Expenses
One of the very first things you should do when facing the possibility of foreclosure is taking a closer look at how much money you're bringing in and how much you're spending. If possible, figure out a way to increase your income -- taking side jobs can go a long way. With 46% of two parent households having both parents work, it may be difficult to find the time to add a second job. And it's important to scrutinize your budget and see where you can cut spending. Cutting back on things like cable, clothing, and Internet may not be ideal, but it's better than losing your home. You may also need to keep a closer eye on utilities usage. With a family of four using over 400 gallons of water a day, there are probably a lot of opportunities to cut down on waste. Taking these steps can also show your lender that you really are trying to make a change and save money.
The next logical step is to consider refinancing your home. Refinancing your mortgage can possibly give you more reasonable monthly payments that you can make over a longer period of time. This has a lesser impact on your credit and can help you keep your home. It's important to talk to your lender sooner rather than later about refinancing because there may be certain programs you're eligible for that can help refinance quickly and appropriately. Avoiding the situation is only going to make it worse, so take action quickly.
Ask for Help
When you're struggling financially, it can be really challenging to swallow your pride and ask for help. But when you're facing foreclosure, you may not have any other options. You may want to consider asking a family member to borrow money or help refinance your mortgage. If that's not an option, there are other organizations and agencies that can help you keep your home. These agencies work out arrangements with your lender and can do their best to decrease your payments until you can get your financial situation in order.
According to a Harris Interactive poll, 38% of people agree they would be scared if they were facing foreclosure. And foreclosure is not as uncommon as you may think. So hopefully, taking these steps can help with your financial situation.