Millions of Americans are facing the embarrassment and humiliation of losing their homes to the mortgage foreclosure process. Foreclosures are up over 50% from last year and so is the pain of losing ones home.
Not only are many of these folks losing their homes, they may actually be homeless as a result of their loss. This has to be a most stressful time on them and their families. No one knows the agony of losing a home unless they have experienced it themselves.
However, many times this unfortunate circumstance is because these folks have never been properly instructed in how to balance a checkbook or to track their finances in the most rudimentary of ways.
Bankrate.com did survey a while ago and discovered some terrifying news. Mr. and Mrs. Joe Six Pack rated a horrendous "D" in financial understanding. How is that for a modern education system for turning out young adults into the real world without even teaching the basics of home finances?
Maybe the Six Packs cannot learn all the laws of economics before they lose their home to foreclosure, but if they are serious about keeping it, they can stop foreclosure process by taking massive and decisive action now. One of the fastest ways to stop home mortgage foreclosure is by discovering how hundreds and even thousands have stood up to the "man" and kept their homes.
What is worse than being totally untrained in the rudiments of home finances, they simply do not understand the burden of a thirty or forty year mortgage and the implications they will find themselves in if they cannot live up the small print on the back of the note. The small print they were to lazy to read and/or not schooled enough to understand the legalese contained therein.
These poor trusting folks have been raised to believe the bankster, like the local police use to be known, as their friend, and they are there to help them. Nothing could be further from the truth. The bankster is in the money business and he wants all he can get anyway he can get it. There are laws against banking fraud, but only if you can catch them at it or know what to look for.
Everything usually goes quite well as long as monthly payments are made. The minute the Six Packs find themselves in over their head or their finances have changed they panic and become like deer in the headlights of an on-coming car. They are frozen stiff and will be knocked for a loop financially if they do not realize they are about to be hit and start taking massive action to defend their home.
Unfortunately, most of them will not take any kind of action at all. They will still be sitting on their couch as the sheriff deputies move it and them out to the lawn. While still sitting there in the yard, they will still be believing a miracle will happen to save their home.
These young folks are not the only ones to get into trouble financially. Many seasoned veterans have found themselves looking down the barrel of bill collectors and foreclosure process because they got carried away with their credit cards. It could be a whole different matter if they had to part with a hundred dollar bill with every purchase instead of just pushing a piece of plastic through a machine.
In order to stop foreclosure, the homeowner must take action. Massive and decisive action, immediately if not sooner to prevent their home from ending up on the auction block down at the courthouse.
Almost the last thing banks like, is to be ignored. If the finance picture changes and it is going to effect the payment schedule, it is imperative the bank be contacted as soon as possible to inform them of the change and how Mr. Homeowner plans to take care of the loan.
All communication with the bank should be in writing. Things in writing tend to help keep even honest people honest. Memories have a way of fading.
It will not be work of joy, but someone has to do it. An accounting of all debts and payments must be done. A budget must be made and realistic adjustments must be made as required to get the bankster to take note of your ability to repay on a new schedule before they will consider making any kind of adjustment to the original agreement.
All of this must be done prior to contacting the bank an approval will not have a prayer of being approved.
Some important things to be considered by the Six Packs, every bill and expense must be examined to see where it can be trimmed back or eliminated. When facing foreclosure, it is no time to let the wants over rule the needs. Every angle must be examined and scrutinized to find a way to cut down on the outgo and/or increasing the income. Maybe a home business would be in order. Or the selling off the extra vehicle or maybe a part time job. Nothing is sacred when it comes to putting a stop mortgage foreclosure.
If this plan is accepted and flubbed, the bank will probably go ahead with the foreclosure process and the homeowners will find themselves living amongst the others who also use to be living the American dream. Their dream home just became a nightmare.
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