• Jeran Jaurigue

Facing Foreclosure? Here's How To Protect Your Credit

Are you facing foreclosure on your home? If so, you're not alone. Home foreclosures are soaring in the US. upwards of 33% and none of us want to become a part of that statistic. You may think there's not much you can do to avoid foreclosure, but in many cases, there are alternatives.

Reorganize Finances and Priorities

When you're facing foreclosure, it's tempting to think there's nothing you can do about it, so you don't bother changing your spending habits. But now is the time to take a hard look at your finances and priorities. There are almost always ways to save a little money—such as shopping at discount grocery stores, carpooling, and eating at home instead of at restaurants. Even though you may save only a little at a time, it adds up. Thrifty habits can put you on the road to financial recovery—and may help you save your home or credit rating.

Reduce Your Mortgage Obligation

There are generally two ways you can approach this: You can negotiate with your lender or you can file for bankruptcy. In times of soaring foreclosures and sluggish housing markets, your lender may be willing to make a deal that keeps you in your home. If you file for bankruptcy, you may be able to obtain important protections and reduce your debt—including your mortgage—by a significant amount.

Consider Selling Your Home

In most cases, you will be able to fulfill the obligation of the loan by selling to a private investor allowing you to walk away from an unaffordable home without a foreclosure on your credit history. A private sale involves selling the property for greater than or equal to your outstanding mortgage obligation, satisfying your debt by mutual agreement and potentially leaving cash in your pocket to start fresh.

Be Proactive

Some who are facing foreclosure simply avoid thinking about a difficult issue. Others believe they are powerless to stop it. But if you are in this situation, it's best to be proactive. Think about these foreclosure alternatives and whether any of them might work for you. Talk to one of out professionals before you commit to a course of action. A foreclosure alternative may help you protect your credit—and your peace of mind.

To find out more about foreclosure prevention options click here to speak to one of our specialists about the options available to you.

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