As 2010 started, we here in Phoenix still face an incredibly challenging housing market that is predicted to take a few more years to see the bottoming out of the number of foreclosures coming on the market. If you are a home owner and find yourself in any place of question about whether you are going to financially survive the current economic downturn, please keep the following in mind with regard to how to avoid foreclosure.

• Are you having a tough time keeping up with your mortgage payments? Are your mortgage payments hitting a little too close to your monthly budget? If so, look into the HAMP Program and the HARP program.
• If you are faced with not being able to make your monthly mortgage payment for the first time – CALL your mortgage company immediately. Do not give up – lenders are available to talk if you are going to have a problem. You may have to be persistent, but pushing through will make a difference. Lenders do not want you to go into foreclosure.
• Are you in an ARM (Adjustable Rate Mortgage)? If so, you may be okay for now with the lower interest rates. But rates are not going to stay low forever. While rates are low, you may want to consider refinancing (using the HARP program if necessary) into a fixed rate or maybe even another adjustable rate.
• If you are making your payments – are you saving for a rainy day? If not, you may want to save some cash while you can with lower rates to give yourself some extra money in the future if rates do go up, or if you find yourself in the unfortunate position of losing your job or having some other type of financial disaster. Saving 3-6 months of bill money while you can may make the difference for financial survival or financial ruin.
• Lastly, if you are having a tough time paying your mortgage payment you may want to look into a short sale. A short sale is where you sell your house for less than what you owe on your mortgage. Your mortgage lender must agree to your short sale request which means they must agree to take less in a payoff of your mortgage than they would get if you paid them in full.

Contact one of our foreclosure prevention short sale real estate experts to learn about options you have to prevent foreclosure.