Owning a home is one of the most effective ways to build wealth
and establish a positive net worth. If you have never been a
homeowner, eliminating debt is one of the first steps to
buying
a home. Getting rid of credit card debt will allow you to save
more for a down payment. It will also improve your credit score,
thereby helping you qualify for a mortgage loan with a better
rate. This can save you thousands.
If you are ready to begin saving to buy your home, you may
wish to locate a nonprofit organization in your community that
offers Individual Development Accounts (IDAs). These special
programs provide grant incentives in the form of matched
savings, as well as down payment assistance through special low
interest second mortgage programs. Many IDA providers are able
to combine incentives from the state, county and local city
governments as well as from private sources.
Current Homeowners
Heavy credit card debt can place a heavy burden
on homeowners. A home is your most important asset. When money
is short, your mortgage payment is more important than unsecured
credit card payments. If you have already fallen behind on your
mortgage, then it is important to know the
steps a lender takes
to foreclose as well as your
options for avoiding foreclosure.
Preventing Foreclosure
Foreclosure strips any equity you have built and
it puts a damaging mark on your credit. Even though you may be
free from mortgage payments, you still will have to find another
place to live. Many rental homes and apartments require a credit
check as part of the rental application. In short, your best
option is one that will allow you to
avoid
foreclosure altogether.
There are no winners when the mortgage company
forecloses on your property. The costs for the lender can be so
substantial that many lenders would rather compromise with you
on a workout agreement than foreclose on your home. Whatever you
decide, protect your investment and
get help
from someone you trust.
