Facing foreclosure: 5 tips on what to pay and what not to pay while behind on your mortgage
I am truly passionate about helping people in financial distress. There are two reasons for that: First: I’ve been there and I know what hurts. Second: I believe that anyone is capable of helping himself. I tried those recently proclaimed “debt consolidation” and “debt elimination” services. They didn’t work for me. I used my services and was surprised to find that it worked perfectly.
I often hear from clients and friends who have been stressed and worried about the situation. They generally continue to pay the credit card bills, because they don’t want penalties or any charges added to the balance. My opinion is that credit card payments are more manageable and people are inclined to keep “at least” this end of credit “clear.”
The following tips will help you manage your bill payment program and survive foreclosure.
1. Regardless of any concerns or doubts, don’t pay your credit cards if you can’t pay your mortgage. For example, if you skip 3 months of paying your credit cards, it will give you a month of mortgage payment. If you can pay quarterly, the mortgage company won’t start the foreclosure process for many months.
2. The only weapon credit card lenders have at their disposal is fear. They cannot take any of your property and they cannot place a lien on your primary residence. Credit card loans are risky for lenders. This is the reason for the high interest rates (I have seen more than 30%). Again, credit cards must be discarded first.
3. Property taxes are generally paid from the escrow account. Rarely will the lender allow you to repay them without exercising any control. In the event of foreclosure, the lender is the one who pays the property taxes for you. They have to protect their investment.
4. Utility bills are important and must be paid. If there is any difficulty in paying on time, always contact the company before the due date. Make a payment plan. Also, ask for discounts: your cable provider, phone company, etc. There is nothing to lose, but to eventually gain.
5. Never pay anyone who promises to save your home. All the services you need are free. Don’t consider filing for bankruptcy right away; There are many options that you must exhaust before taking this action. This way you can save another thousand dollars or more for the bankruptcy attorney.
During foreclosure it is absolutely important to maintain a positive, worry-free attitude. Remember, “Worry is meant to be necessary but has no useful purpose.” Express love and appreciation for your spouse and children. They are your true treasure and meaning of life. Spend time together having fun and laughing. Good feelings will bring good results.