Stop Mortgage Foreclosure: Plan your Escape
Written by Charles on January 21st, 2009There are literally thousands of people looking to stop mortgage foreclosure today. The country is in economic turmoil. Jobs are being lost daily. Entire neighborhoods are becoming vacant do to the immense number of foreclosures taking place today. Sadly, a lot of those foreclosures could be prevented.
If you are facing foreclosure, there is help. In fact, at no time in our history has there ever been so much help. Banks and lending institutions are scrambling to save face and show they are on the people’s side. Politicians are proposing bills in order to gain favor in the eyes of voters. Take all of this, and you have a winning situation to stop mortgage foreclosure.
You simply need to plan your escape out of your own personal foreclosure crisis. Your plan needs to center around saving your home in any way you can. Obviously, you need to take action in a way that allows you to be able to afford mortgage payments.
First, call the mortgage company and ask them how much you owe them. Ask for the balance, past due bills, and late fees. This will help you formulate a basis for your plan. From there we move on to “finding money” options.
Family and Friends
This is the least popular, but best option for coming up with money. It takes guts to ask a family member for a few hundred dollars. It is a degrading task, but most of the time you will get the money you ask for.
401K
Never recommended, but desperate times call for desperate measures. Your 401K plan is an excellent source of funds, and there are two ways to leverage this money – loans and withdrawals. You are able to take out a loan on your 401K once a year. The balance is determined by your plan, so call the company your plan is administered with and ask about your loan availability. You can take out a loan without suffering penalties for early withdrawal. If the loan amount isn’t enough, although it should be, ask about a hardship withdrawal instead.
Homework
Sit down and write out about 5 places you think you can find a little extra money. Work those sources to see how much money you can come up with. You would be surprised how easy it is to find help in this day and age. No one wants to see other people suffer.
So, find out how much money you need to save your home. Tap your sources to find extra money. And work your way out of this situation. It is possible to stop mortgage foreclosure.
