Foreclosure rates are as alarming as unemployment rates. Deciding what to do if your home is threatened in this way is a severe test of maturity. We don’t want to lose what is usually both our biggest financial investment and, truly, our safety and refuge.
One of my favorite legal self-help publishers has an article I’m running in a series beginning today and continuing on Monday 2/22, 3/1, 3/8, 3/15, 3/22,/ 3/29, 4/5, 4/12, 4/19, 4/26, and 5/3.
This is the introduction to the body of the article:
If you face foreclosure, realistically assess whether you should keep your home.
If foreclosure looms because you’ve missed some payments, or you think you will soon, it’s time to face what’s probably the toughest question of the whole process: Can you afford to keep your house?
Apart from the emotional considerations that surface whenever a foreclosure is threatened, there are economic factors you just can’t ignore. Before you can decide whether or not to try to keep your house, you need to take stock of your financial situation — which has no doubt changed since you bought your house.
Here are the basic steps:
- determine if you have equity in your home
- decide if you can afford your monthly mortgage payments, and
- reduce your debt load.
Reprinted with permission from the publisher, Nolo, Copyright 2009, Nolo