HOUSEHOLDS TURNED UPSIDE DOWN: Homeowners struggling with high mortgage payments and headed toward possible foreclosure still can take steps to prevent the nuclear option: Packing up and driving away from the house. Finding flexible alternatives is paramount in such high-mortgage, high-default states as California, where adjustable-rate mortgage resets are expected to peak in 2008. See tips below:
A summary of foreclosure prevention tips offered by the U.S. Housing and Urban Development and Brothers
Redevelopment Inc. of Denver:
1) Contact your mortgage company as soon as you realize there may be a problem with making payments. Make sure to respond to all mail and other correspondence from the company.
2) Educate yourself about homeowner’s rights, foreclosure prevention options and foreclosure laws.
3) Read mortgage documents carefully to become familiar with what would be required if you are unable to make payments.
4) Prepare and follow a household budget to keep spending in line. Try to cut costs on non-essential items such as television subscription services, meals out, movies, and other entertainment.
5) Look for ways to make extra money by selling non-essential assets, taking an additional job or even renting out a room.
6) Make an appointment with a non-profit housing counselor to review your situation and provide any assistance that’s needed.
-- compiled by The Associated Press
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