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Avoiding a Foreclosure
We all encounter a few financial struggles now and then. But if you’re a homeowner—there’s one golden rule: Don’t let your lender take back your home. Foreclosure is a financial disaster which can haunt you for years. The good news is there are ways to avoid foreclosure, no matter how bleak your situation. Depending where you live, the foreclosure process can begin after you've missed just one mortgage payment. So, take preventive action right away. First, when money starts getting tight, pay your mortgage and your car loan before all other debts. Creditors use those two payments to gauge your financial status. Filing for bankruptcy and refinancing are two frequent solutions. Realize that bankruptcy tarnishes your credit rating for seven years. So choose that option after careful consideration. Refinancing through a home equity loan can save you. But you must be able to change the habits or situations which got you in financial trouble. Otherwise, this second mortgage will just be one more source of debt. The last resort is selling your home. You may take a financial hit, but virtually anything is better than a foreclosure. Talk to an expert about the best way to handle your debt. Lawyers, Realtors, or credit counselors are all good options