Top 5 ways for Moms to avoid foreclosure.
It's the new F-word: foreclosure. And it's estimated to hit 2 million Americans in the coming months. Even knockout champ Evander Holyfield and Ed McMahon -- who is known for handing out those enormous checks -- are fighting this sad truth sweeping the nation. We spoke with one Mom who was recently forced into foreclosure who shared her battle. "It was devastating. Our whole life dropped out--just like that." We've got expert tips on how save your home.
Many Moms have had to foreclose because of risky loans that start at a deceptively low rate and skyrocket after a couple of years, says T.J. Marrs, author of Foreclosure Profit Machine. Other contributing factors
include lost jobs as well as predatory lenders looking to make a quick profit by selling tricky loans. While President Bush announced his Project Lifeline plan a few months ago to assist delinquent homeowners, there are many things you can do to prevent foreclosure on your own. Here are Marrs' top five tips:
- Pick up the phone: If you're late on your payments, call your lender. The worst thing you can do is crawl under a rock.
- Cut the fat: Look at your living expenses, and cut unnecessary items so you can make your mortgage payment.
- Look at your options: Interest rates are very low, says Marrs. Consider getting yourself into a better fixed rate mortgage.
- Phone a friend: Don 't be afraid to ask relatives for help. Do whatever you have to do to protect your credit score.
- Use your resources: Look at all your savings and investments and use those reserves if you have them. Your credit score is more important than the interest you may have in your savings.