Your home is your castle and surely one of the most important investments that you can make in a lifetime. With economic instability in the world today, your financial circumstances can take a devastating hit unexpectedly.

During the recession that began in 2008, hundreds of thousands of Americans found themselves quickly in financial straits. The markets had plummeted and homes on every block were under foreclosure. It can happen to anyone, no matter how prepared you may think you are.

It is not only a sudden economic shift that can affect your finances, but also sickness, an injury that prevents working or a death in the family that affects your income. Anything can happen, and knowing how to avoid losing your home due to foreclosure is the best way to be prepared for the unknown.

Foreclosure is the legal means that your lender has to take repossession of your home if payments are not made. It can happen quickly, so here are some tips to keep you in your home.

Don’t Ignore the Issue

No one likes to think about the possibility of losing their house, but ignoring the problem will not help. Being proactive in this situation is the best way to take advantage of any helpful resources that may be available to you. Don’t ignore mail correspondence and phone calls from your lender — they won’t go away. Gather all your mortgage information and go to talk to your lender about the situation and see what can be arranged or what factors need to be met.

Know Your Rights

Before you go to talk to your lender or consultant, read through all of your mortgage papers, even the fine print. This will give you a better understanding of all of the factors of your loan as well as any penalties that you may be incurring. Research foreclosure laws in your state to find out exactly what your legal rights are. The more research that you do to find out what attorney foreclosure defense can and can't stop, the more knowledgeable you will be before you decide to talk to a consultant.

Re-Budget

The most important thing in your home budget needs to be your home payments. Apart from any health care costs that need to be paid, making your mortgage payments must be your only priority. Go through your bills and decide what can be eliminated — even for the short term — until your mortgage is in the clear. Try to eliminate any type of luxury spending that isn’t critical to your daily life. Cable packages, maid service, entertainment, eating out, phone service (you only need the basics), internet, credit card payments, etc. Make a list of sellable assets and start putting things online for sale. If there is someone else in the home that is old enough to work, they should start looking for a job until the debt is paid off. Everything is replaceable or renewable as long as you still have a place to live.

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    Homesgofast com

    Homesgofast.com is an international real estate portal and news source for Google news. Publishing international real estate, finance, homes and travel-related news and blogs for a targeted audience since 2002. Each news item is circulated to thousands of potential readers each day and is also available to the millions of people who sign up for Google news alerts. Find homes offered for sale and to rent direct from owners and some of the best real estate agents from over 35 countries