No one signs his or her life away at closing thinking it will end in foreclosure. Maybe that's why the majority of buyers barely read what they are signing. According to the Freddie Mac / Roper poll of US homeowners Conducted 2005; six in ten homeowners wish they understood the terms and details of their mortgage better. Maybe if they did, they could see the possibilities of preventing the demise of their credit in the event of financial hardship.
When entering any type of loan or binding contract, it always pays to educate yourself on the terms and options. For example, many lenders require a large prepayment penalty for paying off the loan early. Yes, this includes refinancing. This one term alone could end up costing you thousands if not understood. Another example is that many borrowers have the option to waive one mortgage payment per year without penalty. This one term alone could save you thousands if you find yourself in a financial hardship.
If you are already in a dilemma and can not seem to come up with the funds to get yourself out, education could be your ticket. Make it your mission to search out strategies to avoid foreclosure and surround yourself with financial gurus. You can start by dusting off your closing docs. If you do not understand something, consult a trusted source who has successfully guided borrowers through innovative alternatives to foreclosure. And, finally, think outside of your home for resources to pull from. Take a look at your entire financial portfolio before making any decisions. Maybe you could consolidate some assets or cash in on some stock to pay the payments on your home while it is up for sale. Get creative, play with the numbers and most of all, and never stop learning. One valuable piece of knowledge could be worth a whole month's paycheck. As Henry Ford once said, "If money is your hope for independence you will never have it.