foreclosureFinancial trouble looms around every corner.  You are sweating and in the dark.  There was a time where that awesome job of yours was paying the bill and you still had some play money.  New car, caviar, four-star daydream, think I’ll buy me a football team.  It’s just not like that anymore.  The company had to cut some people from the payroll and you were one of them.  Now you can’t make all of your monthly payments for the car or the caviar.

It’s tough to realize that we have all been living above our means.  This was especially true in the housing market before the bubble burst.  I’ve got a great job and I’ve got thirty years to pay off over a million dollar mortgage.  That sounded great until the job was gone.  Now you are struggling to pay everything on time and are piling up massive credit card debt so the wife and kids don’t notice the change in their day-to-day lives.  The real trouble comes when you can’t afford to pay off your debt and your car gets repossessed.  That’s probably a good thing.

Your most valuable property is your home and this asset should be held onto at all costs.  If you are beginning to deal with your money in the way that was described above, then you are probably facing a foreclosure.  I understand that medical bills or some emergency may have wiped you out.  Now is the time to prioritize.  Make your home your number one priority for your sake and your families.

Have a look at your bank statement.  You will probably notice all kinds of immediate monthly withdrawals for services you don’t even use.  These are the kind of things that have to go.  If you can’t afford to pay your mortgage, what business do you have trying to pay for a brand new car?  Sell that sucker and get a junker until you are back on your feet.  There is probably enough extra money getting tossed around that you could pool it together and make your mortgage payment fine, unless you really bit of more than you could munch on.

My personal experience with foreclosure made me do an online search for Tenafly NJ real estate to see how many foreclosures there are in my area.  This helped light a fire under me.  I vowed not to be one of them, and you don’t have to be either.

Don’t let panic set in.  You do have a little time to deal with this, but not much.  The timeline for foreclosure varies from state to state, so do your research.  You need to get in contact with your lender the first time you miss a payment, not the second or third, then it really may be too late.  These guys want your money, not your home, and will offer some helpful options for payment and can even offer counseling.  If you let their phone calls go and ignore their mail, they will not be so excited to help you because you can’t even help yourself.  One day you will open up a letter from them that tells of pending legal action.  You don’t want that.

If you are facing a foreclosure, do everything you can to keep your home.  Refinance, sell stuff, stop making payments on junk you don’t need. You can get through this, but be smart and proactive!