Useful Tips on How to Avoid a Foreclosure

by Derek Allison Sell your House Fast for Cash in New Jersey

Are you a struggling homeowner, falling behind your mortgage payments? This is the time to come up off the lazy-bone mode and be proactive so that your home can be saved from a foreclosure. It’s wrong, if you’re putting your mortgage lender in a bad light; he does not really want your home, and thus is always up to work with you to save your property. However, you will need to be organized on your part; take steps as soon as possible; know the foreclosure process and understand the feasible options. Doing these things, you will better your chances to keep yourself in the property avoiding a foreclosure.

Here are a few way-outs to avoid a foreclosure:

Gather all your loan papers and systemize a case file:

If you are falling fast into the hole of unfortunate family issues, chances are you may miss your mortgage payment. Wise thing is to get organized. If not in paper, save all your mortgage payment records in an Excel file along with important documents related to the property.

As loan documents, you will want to save the promissory note and mortgage. Besides, you will also want to include:

Mortgage monthly payments statements
Escrow statements (if any)
Information of property tax
Insurance information
Correspondence (if any) from your mortgage servicer
And, proof of any letters you sent to your mortgage servicer

Understand your mortgage rights:

Once you gather your mortgage papers, spare time to actually read through each and every clause printed on it and learn what may happen if you miss your mortgage payment. The promissory note and the mortgage will contain crucial information as for example –

Whether you can restore the loan by meeting past-due amounts
What is the charge for monthly late payment
And, is there any other kind of fees the service provider may charge on your failure to make payments?

Gather all your financial information:

While you gather the loan documents, do not forget to organize your financial information. You will want to gather all your recent pay ends, federal tax returns, bank statements, supporting documents etc. if you have any other income source such as rental income, alimony and social security.

Write up your budget:

Now that you already know your income and expenses, it’s a good time to review your needless expenses or bad spending habits. This will help you design a realistic budget at least until you improve your circumstances.

Start off by finding ways to save a little from your everyday expenses. For instance, if you are buying a king size café latte from Starbucks in every morning or have your lunch out at the Subway, get off these habits at least until your circumstances improve (yes, once again). Besides, you may also be having expensive gym membership, cable connection or other forms of entertainment services; try to cut-off your spending on these services as quickly as possible. Things will start getting better then.

Know your options:

If you fail to continue your mortgage payments, try to find if you have more choices. Practically, there are options, but before you approach any, you will want to evaluate your overall financial scenario.

There is one real estate investor in New Jersey, who has been assisting a large chain of unfortunate home owners with legally fitting foreclosure help in NJ for an incredible time period. It’s Turbo Home Solutions that deals in easy and quick NJ foreclosure help for all size and conditions of property.

They will help you …

… Sell your home or buy your home offering instant cash to pacify the current conditions.

No one wishes to fail their home to a foreclosure. However, if you feel you are better off not owning it anymore or finding no other choices to regulate your mortgage payments, it’s always better to sell it where instant cash is generated.

… Make a short sale.

It means if your home is worth lower than mortgage balance, Turbo Home Solutions will help you negotiate a short sale with your servicer.