What are the best actions new homeowners should take to avoid going into foreclosure in the future?
Posted by admin on 5 Apr 2008 8:11 am. Filed under Personal Finance.
Kemo Nosabe asked:
Here is the scenario and actual facts. Right now in this country, we are experiencing an unprecedented number of home foreclosures! What I’m talking about here is; from the day the new homeowners occupy their home, what should they be doing or NOT doing in order to AVOID going into foreclosure? If you have been a successful homeowner for a good length of time, what have YOU been doing to make sure that you will always meet your obligation to the bank or mortgage company?
Here is the scenario and actual facts. Right now in this country, we are experiencing an unprecedented number of home foreclosures! What I’m talking about here is; from the day the new homeowners occupy their home, what should they be doing or NOT doing in order to AVOID going into foreclosure? If you have been a successful homeowner for a good length of time, what have YOU been doing to make sure that you will always meet your obligation to the bank or mortgage company?
On April 7th, 2008 at 6:35 am
I paid the mortgage first, no matter what else I owed. I always kept an amount equal to two mortgage payments in my savings account.
On April 7th, 2008 at 5:53 pm
As the previous person replied and also keep other overhead low. Avoid car payments. Buy a used car for cash or less.
Better yet, get rid of the car if you can. Fuel and cars suck up an amazing amount of $. Don’t have more kids than you can afford.
Don’t blow money on booze, cigarettes, fast food, eating out alot, etc. Be married and have 2 incomes if possible.
Have a money making hobby supplementing your day job.
Sell needless things, or things you haven’t used in 1 year.
On April 8th, 2008 at 4:25 am
Open a brokerage account and invest in the Stock Market half your paycheck (With the help of a Financial Advisor)
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On April 10th, 2008 at 2:49 pm
Like everyone else said. Pay the mortgage first. Your house is a secured asset. Credit cards are not. Do not take out a home equity loan to pay of or consolidate credit card debts. You are replacing an unsecured loan with your house as collateral. You would be better to use 0% or low interest credit cards to consolidate bills.
After that, budget your money, and if possible, make an extra $25 payment each month toward the principal. It doesn’t sound like much, but an extra mortgage payment each year will cut a 30-year mortgage in half.