A Few Tips To Avoid Foreclosure

A shelter from the elements is one of the most important necessities that we need for everyday living. Unfortunately not all of us have the luxury of buying a HUGE mansion. Mortgage is one of the bills that we have to pay. But we often forget them amidst the stack of credit card bills that come in the mail. Home foreclosure is one of the most common problems.

Get a home equity line of credit

A home equity line of credit (also known as a HELOC) is a type of loan where the house is used as collateral. Most banks offer great options for customers. This can delay or prevent a foreclosure from happening by having it as a back up.Then should you need it, you will have the money you need if other emergencies arise.

Don't miss and skip

This may seem like a simple thing but it's the one most often taken for granted. Once you miss one payment it will be easier for you to miss the rest. Lenders also have acceleration clauses where they can demand that the customers pay every payment that they've missed all at once.

Know who to pay

Bills,bills,bills....all due at the end of the month. You should set your priorities straight and ask yourself: which do I want to loose, my house or my credit card? If you don't want credit card debt then monitor your expenses.

Also make sure your mortgage lender has not sold your loan to another company. This happens all the time. the end result is you sending your hard earned money to the wrong bank...and missing the first payment to the new bank holding your mortgage. CHEAK THE ADDRESS!!

Do not forget to check your mail

Don't ignore the letters/calls from your lender or bank. It doesn't hurt to respond once in a while. Failure to check your mail will not be taken as an excuse in court. Always check your mail box.

Think of a way out and don't get yourself stuck

Lenders usually lead their clients to believe that they don't have options once they demand to accelerate the payments. Customers do have options, there are several options for foreclosure prevention that they can use especially if they know where to look.

Feed the piggy bank

Prioritize your needs and always keep extra cash handy. The money we spend on credit cards by buying expensive electronics, clothes and jewelry can add up to more that you expected. Most of these little shopping sprees go unchecked and can use up all your savings.