Owning a home is supposed to be part of the American Dream. However, tough economic times, poor purchase planning and unexpected financial hardships can all put that dream in jeopardy. Whether you are yet to experience trouble with mortgage debt or already facing foreclosure, here are a few tips to help manage your situation.
1. Outline your budget. Many people buy a home without ever considering how much they can actually afford in a monthly payment. Before shopping for a home, know your limit for monthly payments.
2. Stay within your range. Don’t make the mistake of shopping for a home in your loan approval range; rather stick with your outlined budget range. Just because you are approved to borrow more from the bank, doesn’t mean you can afford to keep up with that payment in the long run.
3. Account for all expenses. Remember that your monthly payment isn’t just based on the home value, but also includes taxes and insurance. This will add to your total monthly payment. Also, be sure to factor in money for maintenance costs on the home over the year.
1. Never miss a payment on purpose. While you may have heard that missing a payment on purpose demonstrates a greater need for help, this is poor advice that often leads to worse outcomes.
2. Don’t wait to contact your lender. You may be surprised to learn that your lender is actually more willing to work with you before you have missed a payment. Show your lender you are responsibly managing your financial situation by getting in contact to negotiate a solution right away.
3. Contact a professional. A Cincinnati bankruptcy lawyer can help you stop the foreclosure process, negotiate a solution with your lender and get you back on track to financial freedom. Working with an experienced bankruptcy lawyer is often your key to success with mortgage debt troubles.