Saving & Planning can Help you Avoid Foreclosure

 

Owning a home is a dream for most families. Unfortunately millions of homeowners are still dealing with the possibility of losing their home to foreclosure.


Thousands more do not realize how close they are to a financial nightmare. Before the mortgage meltdown homeowners still lost their home to foreclosure and usually it was a result of bad spending habits. Stopping forecloure begins well before it ever starts. A solid financial plan and household budget can help families avoid foreclosure if a harship should arise.

A financial hardship, according to most lenders, is an issue such as health problems, job loss, divorce or a failed business that has changed your ability to pay your bills. Financial hardships can not always be avoided. By planning and putting a focus on saving you can overcome most hardships should they arise.

Below are some great tips that can help homeowners be prepared for a financial hardship.

» Save, save and save for more. Most financial experts say having at least 3 months in cash reserves in case of a hardship is mandatory.

3 Quick Saving Tips
 - Cut monthly spending by bundling utilities, shopping for lower insurance rates, eating at home, carpooling and conserving energy.
 - Avoid bank overdraft fees and other bank fees that can amount to hundreds of dollars each year.
 - Pay bills on time to avoid late fees that can amount to hundreds over the course of a year.

» Live within your means. Put off trips, fancy gifts, that new car and more until you can afford them.

» Make your job a top priority and be good at what you do. If you lost your income then it could create a financial tailspin.

» Make smart investments and build on your IRA should you need to access funds incase of a hardship.