Friday, April 30, 2010

Preventing Foreclosure is Possible and Preferable By Chris C Burrows

Foreclosure is a word that no home owner wants to hear. After years of paying for a home, all it takes is a few missed payments to derail a lifetime of dreams. The good news is that preventing foreclosure is possible if home owners follow some simple strategies.

First, no home buyer should purchase more house that they can afford. A good credit record and a good job will usually get most people a decent home, but others are tempted to purchase more home than they can afford if the lender will approve the loan. Potential home buyers must realize that with the mortgage payment comes additional expenses like home maintenance, furniture, insurance and taxes. All of these expenses can eat away at the family budget and make it tough to make mortgage payments on time.

Once the contract is signed, a homeowner should make the monthly mortgage payment a priority. A home is a way to build wealth and generally is the most valuable asset people own. The mortgage payment is usually the largest expense in the family budget, so missing a payment and trying to recover can wreak havoc on the financial situation. When times are tough, families need to look at other places to cut back such as not eating out as much or giving up a family vacation.

Should a homeowner lose the ability to pay a mortgage on time, the lender should be contacted immediately.

Lenders know what steps to take toward preventing foreclosure. They can make adjustments to the loan or write a new loan, and they are more likely to work with a home owner who recognizes that they need help sooner than later.

Mortgage lenders are not in the businesses of selling homes. The last thing a lender wants is to foreclose on a property and have the responsibility for selling it, so early intervention on the part of the homeowner can go a long way in preventing foreclosure.