Three Tips on Avoiding Foreclosure

How close do you feel to compltely falling under the pressure of your mortgage? Changes in income can produce stress, fear, and anxiety. Finding a way to avoid foreclusre may be one of your top priorities. Her are three ideas to help you avoid foreclosure.

Income

Handwrite your exact income. Use a journal or notebook that you can refer back to at a later time. Write down how much income you earn before and after taxes. Read books like Dave Ramseys Total Money Makeover. In this book he discusses that the mortgage or rental payment should be close to twenty five percent of your income.

Job

See what you can do to create additonal income. This may not always require taking a traditional job. Think about how you will feel with a few months of mortgage payment in savings. This could be a side job such as childcare, selling things around the house, or selling your knowledge through consulting services. Ignore what other people will think about you. These may be opinons from friends who are one or two paychecks away from missing their mortgage payment. Build an emergency account with the extra income earned. Do something that earns cash each week or month.

Opportunity

Seize daily opportunities to save money. This could be by learning how to coupon. The immediate savings could be placed into your account, or placed toward outstanding debt that is due immediately on the mortgage.Use your additional income to first add $1000 to an emergency account, over time build this up to six months of living expenses. Start to attack your debts started at the lowest and pay the minumum on other bills. Once the first bill is paid off, keep going on attacking the other bills.