What to Do When Facing Foreclosure

Foreclosure continues to be a very real concern. Indeed, Fed Chair Ben Bernanke thinks that the foreclosures will peak in the second half of this year. So we’re not out of the woods yet. If you are concerned about foreclosure — and think you might be facing it — there are some things you can do.

First of all, you should contact your mortgage lender. The sooner your lender knows about the problem, as well as your desire to prevent foreclosure, the more likely you are to find a solution of some sort. Cash Money Life rounded up some good suggestions from a number of sources about what you can do if you are are facing foreclosure:

* Loan modification.

* Short sale.

* Refinance.

* Rent out the house or take on a boarder.

* Save more money.

* Look for ways to earn more money.

Of course, foreclosure still remains an option. It is vital, though, that you determine how far you are willing to go to save the house. If you aren’t willing (or wholly unable) to do what it takes, a foreclosure might be your only option. Just remember, though, that a foreclosure can be devastating to your credit score, and remain on your credit report for up to 10 years (although it is usually removed in 5-7 years). It is possible to buy another home after a foreclosure, but it usually takes at least 3 years of serious work on your credit score to do so.