Five Tips to Avoid Foreclosure

When money is so tight your wallet squeaks if you pull out a dollar; you're struggling to make mortgage payments; you're worried about foreclosure; you can't see an end to the chaos and worry, you start looking for ways to avoid foreclosure.

First, take a deep breath and don't despair. Although you may be struggling to make payments, you haven't missed one yet. There's still time to avoid foreclosure; it is not yet looming on the horizon.

Instead, read the following ways on how to avoid foreclosure:

1. Save - open up an emergency account. One of the biggest things that people forget is to build an emergency fund. This is not a rainy-day fund, but a savings account used to pay bills that you otherwise might not be able to pay. Every time you get a paycheck, drop a little money into your emergency fund - even if you can only afford a dollar. "It all spends" is not just a cliché; it's a truism.

2. Cut out unnecessary expenses. You know what they are. If you're struggling to pay your mortgage, trying to avoid foreclosure, but you still manage to pay the cable bill, it's time to get rid of the cable. While you're looking at expenses and trying to decide what to keep and what to get rid of, ask yourself two questions.

1. Do I need this, or want it?

2. Is it more important than my house?

If the second question is "no"....

3. Look to the assets. If you have any stocks, other savings accounts or anything else that can give you a lump sum of money, cash them out. While they're nice for retirement, they don't do any good if you lose your home while they're gathering interest and maturing.

4. Look into refinancing. This can be a good way to avoid foreclosure, but you'll have to meet equity and eligibility guidelines. Some lenders will set you up with refinancing options that start at low rates for ARMs (Adjustable Rate Mortgages) or interest-only payments. However, be wary; you might end up with even higher loan payments in the future. Read the fine print carefully!

5. Look into programs for avoiding foreclosure. Some agencies grant funds to people behind in their mortgage payments. They'll even help negotiate to reschedule the payments. However, there are qualification guidelines, such as your income, housing ratio, why you weren't able to pay and others.

If your loan is FHA insured, see if you qualify for an interest-free, payment-free loan. This type of loan only comes due once you're current on your mortgage payments again.

These are just a few things that can help you avoid foreclosure. The key is to try not to get behind in the first place. These tips, if followed closely, may actually help you stay current.

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Troy Fullwood is an award winning speaker, self made millionaire, educator, and coach. He has presented keynote speeches, workshops, and seminars throughout the United States. His high quality, high content, high energy programs are well researched and delivered in a down to earth style that everyone will remember articlepostrobot.com. David also has a articleaware.com/linksubmission directory submission service.