12 Tips to Avoid Foreclosure & Save Your Home

Instability in the housing market has caused disturbances for many people, even if they are not in financial trouble right now. Many people are worried that they may face potentially face foreclosure in the future. Here are 12 tips to avoid and save your home in time:
1. Act early. The more time you have, the more options you have available, and the easier it will be for you.
2. Maintain substantial savings. Do not live paycheque to paycheque. In such a lifestyle you will be highly likely to miss out occasional mortgage instalments due to unexpected expenses. Even if it does not lead to foreclosure, it will lead to fees and penalties.
3. Cut down your expenses. If you cannot build up savings or pay instalments on your normal finances, you need to cut down your regular expenses by changing your lifestyle. Cut lose any frivolous subscriptions and memberships. Plan your groceries smartly.
4. Explore alternative options to raise money. Consider selling redundant items such as cars if you have easy public transport. You can also explore options such as unemployment or disability insurance if it applies to your situation.
5. Contact your lender early. Contacting your lender before any of your financial troubles begin is often a good option. For example, if you just lost your job, you can contact the lender your lender right now instead of after running out of your savings.
6. Seek loan modification. This may be an option if the interest rates in the market or the value of your house have significantly reduced. You can hire a loan modification firm or loan modification attorney from services such as www.loanmoddepot.com to assist you with the negotiations.
7. In case of natural disasters, seek proper relief. In such cases, many lenders may voluntarily suspend late fees or offer to modify term. Some government relief measures may also be useful.
8. Private mortgage insurance. While this will cost you initially, you will have some financial assistance if you fall behind on your instalments. This assistance is usually in the form of low interest or very low-interest loan to bring your payments current.
9. Reamorize. If you miss out on your instalments, this option will add the missed instalments to the balance debt and will effectively bring your payments current. But it may increase your instalments or increase term.
10. Forbearance. This is an option which you may negotiate which allows you to skip or pay a small instalment for a set amount of time, after which normal payments resume. The missed out payments may be adjusted by increased instalments or term.
11. VA take over. If your debt is guaranteed by the Department of Veterans Affairs (VA), then you have the option to have the debt bought over by the VA. You can then work out a repayment arrangement with VA.
12. Bankruptcy. If your lender has begun the process of foreclosure, declaring bankruptcy will allow you to buy some time by bringing about a stay on any foreclosure proceedings. You can use the time to work out some funding source or negotiate with the lender to facilitate repayment.