The economy’s in the toilet. Everyone’s saying so. It’s on the news, and the talk radio shows. Whenever they discuss the stock market, or the unemployment rate they tell us how bad it is. Things are looking pretty bleak. People all over are losing their jobs, and more all the time are losing their homes. They probably wanted to avoid foreclosure but weren’t able to do whatever they needed to do to keep the mortgage current. Millions are in foreclosure you want to avoid joining them. Seriously you don’t want to be in foreclosure.
You’ve Got A Fan Club?
Which of us doesn’t want to be more popular? Doesn’t everyone want to get more mail? Not if it is from companies promising to help you out of your FORECLOSURE and telling you how they can SELL YOUR HOUSE and SAVE YOUR CREDIT! If you can’t avoid foreclosure of your home and the bank files the paperwork, your foreclosure becomes a matter of public record. With a couple of days, you will be receiving many more pieces of mail every day, from companies who want your business. They try to catch your attention by sending you mail a few times a week for however long it takes for you to get out of foreclosure (if you are able to at all). It may seem like a trivial thing, but all that extra mail proclaiming loudly and boldly of your troubles is not only embarrassing but also annoying. That’s not the kind of popularity anyone wants.
You Thought Your Credit Was Bad Before….
Your credit will take a real hit if it has a foreclosure on it. Foreclosure is one of the big things that potential creditors look at when determining if they want to loan you money. It’s right up there with a bankruptcy they both show that when the going gets tough, you get going. You’ll walk away from your obligations if you can’t see a way of paying them. If they lend you money as a new mortgage, or a credit card, etc. – you could just as easily walk away from the loan again. Avoid foreclosure, and you avoid a nasty black mark on your record.
Refi, Anyone? Sign Me Up!
If you’re thinking that just letting the bank foreclose is your best option, think again. Usually, you can refinance your loan, ending up with a better solution all the way around. The upside is that you can end up with a lower monthly payment, helping you avoid foreclosure now and in the future, as your payments would be easier to keep up with. The downside is that there will be costs associated with refinancing, which you will either need to pay upfront or have rolled into your new loan. But in terms of avoiding foreclosure, this answer is a sure-fire winner in many ways. Check your options before signing anything, and be sure to consider refinancing as a way to avoid foreclosure.