Avoiding Foreclosure

As many of us know, more and more homeowners are facing the threat of foreclosure each and every day. This is happening for a combination of reasons:

A few years ago, predatory lenders issued adjustable rate mortgages, in which the borrower's monthly payment increases a healthy percentage after a certain period (usually two or three years.) In many cases borrowers didn't have a clear idea up-front exactly how high their payment would skyrocket after the interest rate increased; or they may have known but thought that they could afford the higher payment after the time had passed. Now that the two- to three-year period has passed, their payments have increased and the borrowers cannot afford their payments.

Many banks allowed higher debt-to-income ratios for their borrowers in the past, and these buyers were pre-approved for greater amounts than they probably should have been and then became involved in mortgages they couldn't handle.

Also, the rising cost of gasoline and food has eaten much of homeowners' extra income. Add this to the job losses experienced around the country, normal situations such as unexpected medical bills or divorce, and the foreclosure rate climbs.

So what do YOU do if you are getting behind on your mortgage payments? The answer is to ask for help as soon as possible. Admitting that you aren't able to fulfill your financial obligations over the long-term may seem embarrassing, but the key to prevention is knowing when to ask for help, and you want to ask for it before things spiral out of control. You also want to the option to be able to take actions such as refinancing while your credit score is still high enough to do so.

Call me at 785-318-0913 or e-mail me at Jessica.Bryant@ColdwellBanker.com now if you or someone you love is facing the threat of foreclosure. I can mail or e-mail you a copy of our report, Learn How To Avoid Foreclosure. "Every day is an opportunity to make a new happy ending.  ~Author Unknown" Contact me for the information today!