Do you want some foreclosure avoidance solutions? Well, some of the ideas Im going to present are common sense. Others fit the times specifically. In both cases, heres some foreclosure avoidance advice.
In all cases at all times, you should avoid buying more home than you can afford, even if you think the housing markets will continue to climb. Dont count on being able to refinance down the road in order to get into a bigger or nicer house.
Similarly, watch out for creative financing. You want a 15 or 30 year fixed rate mortgage. Stay away from interest only or teaser rate mortgages because you probably wont be able to afford the loan after the introductory incentives wear off.
But, if you have found yourself bound by either (or both) of these traps, there are still some things you can do towards foreclosure avoidance.
First of all, you can try to find a family or an investor who wants to buy the home for as much as you owe. Because there are so many good deals on the market currently, this may be difficult to do.
But, if you approach an investor, they may be willing to work with you on a short sale. This is a three way deal where you, the...