Foreclosure is becoming a big problem throughout the United States as we all know, especially as the credit crunch really begins to bite. It seems everyday we hear more and more scare stories of banks failing, foreclosures increasing and families being forced to live on the streets.

Fortunately there are some steps you can take to ease the burden and take some control back into your life and fight back against the foreclosure process. The first thing not to do is sit with your head in your hands whilst the letters and the bills pile up and remain unopened.

LET’S TAKE SOME ACTION:

1. Go and get those unopened letters, household bills, credit card statements and everything else you have been avoiding. It doesn’t matter how long you avoid them, they are still going to be there, so let’s tackle them. First put them into the various categories of importance. Is that reminder that your gym memberships needs renewing more important than that final demand from the loan company? No. So let’s make a folder of who needs paying, and another of who we could pay if we have any money left. Now by breaking these down into these categories it won’t feel as bad as our debt is now being cut down into what we should worry about and what we had better forget for a while. Don’t forget you are not going to lose your house if your not up to date with your gym membership!

2. What are you still paying for that you could do without for a while? I know, we all want the super multi movie and sports package for TV with 10 zillion channels but at $100 dollars a month or so can we really afford it now? How many cell phones are we paying for? Is it possible to walk to work? Let’s take a bus for a while and leave the gas guzzling monster at home. The problem is we all treat ourselves when times are good, then we take it for granted and don’t want to give them up. But by giving them up now you are giving yourself a much better chance of getting them again when the good times come back.

3. Talk to your creditors. If you ignore them things will just get worse. Try and look for solutions. Tell them what you can do, not what you can’t. Banks really don’t want to foreclose on our houses. They really don’t want them as prices are falling and its causing them such a problem. Most lenders will always look for a solution for you to pay something rather than having to foreclose. Maybe you can extend the term of the loan, pay the interest only, take a payment holiday. Keep in contact with your lenders and keep making suggestions of what could be done. If they call you, answer the phone, if they write to you, write back. Keep communicating.

4. Look around your home. How many things do you have that you don’t really need? I can guarantee that we all have a ton of stuff we just don’t use anymore. So why not sell it. Try the local free ads papers, garage sales, friends and neighbors You will be surprised what people will buy from you and if you can get together enough money for a couple of months worth of mortgage payments its going to be a big relief isn’t it.

5. Get advice. You can’t tackle this problem alone. Talking to someone helps. Gather information from the internet, magazines and books. There is whole world of information and advice out there. Make a list of people to contact and things to try and get advice on. Don’t leave it all in your head because if you are anything like me, your mind will just wander off somewhere else and forget. Stay focused and put as much effort into solving the problem as you did worrying about it. Then you will start to see some light at the end of the tunnel.

These simple tips will help to get you started on solving your problem. Sometimes we need more help so Ive put together some comprehensive information at Keep Your Home. If your situation is desperate it is still possible at Keep Your Home to get information that will save you and your family. So whatever you do - do something

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Are you dreading those payment reminders through the post? Taking out a short term loan can come in handy.