27 Jan Lines of Defense: Techniques to Prevent Foreclosure
You may have built a fence to keep unwanted visitors out of your home, and you may have installed a security system to protect against robbers. But what are you doing to protect your home against the mortal enemy of foreclosure? A major part of being a homeowner involves constantly working to build up assets against foreclosure, and knowing what resources are available if times do get tough.
Here are a few very important things every homeowner should be working on to prevent foreclosure, as well as a few steps you can take if you’re getting behind on things.
Every homeowner should know how to budget, and they should be vigilant about keeping to that budget. Treat your home like it’s a part of your family—allot a certain amount of money each month to “feed” your home (utilities, repairs, décor, etc) and don’t take it away. Depending on the size of your home, that could range anywhere from $50 to over $150 a month you should set aside for your home costs (aside from your mortgage). To get a better idea of how to manage your money effectively, attend one of our free Budgeting classes!
While you’re budgeting for planned expenses, it’s also important to have a safety net of reserves should some unplanned events come your way (and they always do). As a bare minimum, you should have enough in your savings account to pay for at least two months of mortgage payments and other living costs.
3. Getting behind? See a homeownership advisor
At what point should you see a homeownership advisor about late mortgage payments? 1 month behind? 2 months behind?
Answer: The moment you get behind AT ALL on your mortgage payments, it’s time to see a homeownership advisor. Our advisors are trained to guide you through foreclosure mitigation and to show you all of your available options, whether that includes pulling from reserve funds, arranging a repayment plan, loan modification, refinancing, or selling your home.
Don’t just wish this problem away, come and see how we can help you as early in this process as possible!