4 Steps To Avoid Real Estate Foreclosures

4 Steps To Avoid Real Estate Foreclosures

Real estate foreclosures are just not ideal for any investor or homeowner. Are you facing foreclosure and just cannot see a way to get out of the situation you are in? Maybe it just seems easier to let the bank take your home and move to somewhere else where you can rent. This is not the solution you need, but there is a help. You can avoid this situation through the following 4 steps to avoid real estate foreclosures.

1. Make a well elaborate and detailed budget

This budget should include absolutely everything you spend money on. This should include down to your socks and toilet paper. The more detailed you are the better track of the money you will have.

2. Track each of your expenses

Track every penny that you spend and what you spend it on. Categorize your spending so that you will have a clear look at where your hard-earned money is going and what you are spending it on.

After you have done this for a couple of weeks you can go back and make some cutbacks. Adjust your budget for what you need and not just what you usually buy. You can stop spending money at restaurants as much and try to shop the clearance rack for clothes and other items whenever possible. Make sure you still treat yourself now and again because you do need to reward yourself when you follow your budget properly.

3. Start sending partial payments to the mortgage company

Next, it is time to deal with that mortgage company. It is always better to send a partial payment, than not sending a payment at all. So if you cannot afford your full payment, at least send what you can afford. This shows that you are still committed to paying your payments.

You should call your mortgage company and negotiate with them. Mortgage companies have way too many foreclosures to deal with as it is and they do not want another one. They will be willing to help you out if you continue to pay them. Talk with them and see what they can do to make life a bit easier on you until you get back to a better financial situation.

4. Spend your tax returns and bonus wisely

The last thing you need to do is stop spending tax returns and bonus money on things you don’t need. You should split your tax return, bonuses, and other forms of found money up. Save at least half of it, use some of it to make an extra mortgage payment or partial payment, and use about 25% of it for something you want.

Use these tips to help yourself avoid real estate foreclosures before they happen and after you are already headed that way. Remember, that discipline will help you with your finances and your mortgage company will be willing to work with you if you are still paying them whatever you can realistically afford. This will be to the good of you and the mortgage company also.