Released June 23, 2009
URBANA, Ill. - If you can see that trouble making mortgage payments may be in your future, there are steps you should take now, said a University of Illinois Extension consumer and family economics educator.
"If foreclosure proceedings haven't already started, we advise taking these five steps recommended by the National Association of Foreclosure Prevention Professionals. Step 1 will help you stay out of trouble in the first place," said educator Susan Taylor.
1. Investigate lenders. Before you buy a house, do your research. When you are making a big purchase, it's important to compare. Lenders offer different interest rates. Know what you can afford. Always know the details of the loan. Always read and re-read the fine print. Know what you are getting into before you sign.
2. Get financial counseling. If you are on the brink of financial troubles, have a meeting with a financial counselor. Don't count out the Internet for tools to help you keep your finances in good health. Visit U of I Extension's "More for Your Money" website at http://web.extension.uiuc.edu/money and their "Getting Through Tough Financial Times" website at http://www.ToughTimes.illinois.edu. The goal is to make payments on time and avoid default payments, which can lead to foreclosure on your home.
3. Pay bills on time. Everybody wants to pay their bills on time, but with our busy schedules and family, we many miss making timely payments. The last piece of mail you want to receive is a letter from your lender saying you have defaulted on your home loan. Staying on top of your finances is essential in avoiding foreclosure. Know exactly how much you have in the bank and how much you are spending on bills and insurance. Most banks give the option of online banking, which can be extremely helpful. There are many reasons for not paying your debts, but there is no reason for not communicating with your creditor.
4. Get out before the storm hits. Stay on top of your finances. If you realize that you are in over your head, don't panic. Talk to your lender, a local investor, or someone you know who can help you find your way out of this mess. You're seeking help to decide whether to sell your house, refinance, or take out another loan.
5. Know your options. When you are behind on two mortgage payments, it's easy to become overwhelmed and scared. If you foresee financial struggles, know your options. Look at online resources that can guide you in the right path as well as local investors who dedicate their work solely to helping people in foreclosure.
For more information on how to prevent foreclosure, which bill to pay first, how to talk to your creditors, how to save food dollars, and more, visit U of I Extension's "Getting Through Tough Financial Times" website at http://www.ToughTimes.illinois.edu.
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http://www.aces.uiuc.edu/news/stories/news4826.html
Source: Susan Taylor, (708) 720-7520, setaylor@illinois.edu
Writer: Phyllis Picklesimer, (217) 244-2827, p-pickle@uiuc.edu
