A home is the biggest asset most people will own in their lifetimes. It provides protection for the family and belongings from the elements, intruders, and thieves. It represents safety, security, and comfort. Losing it due to debt or financial hardship is devastating. Before that happens explore the various avenues available for foreclosure prevention in Wellington FL.
Money Management
Few people these days have the knowledge, skill, discipline, or desire to practice proper money management. Balancing a checkbook, establishing a savings account, and creating a budget are not inherent. These skills were once taught in schools as part of math and economics classes. Today credit cards and the feeling of entitlement to have what is wanted now has replaced money management and common sense.
Address the Issue Early On
While there are options that can be used at the last minute, the process of preventing foreclosure is easier and more successful if steps are taken when the mortgage and other debts first become a problem. People tend to struggle for too long before realizing they need outside help. At that point the debt is enormous, creditors have become impatient, and threatening phone calls are a daily event. Another issue is the amount of late fees and penalties that are added to the original principle amount.
Those who schedule an appointment sooner rather than later with a credit counseling agency, a financial adviser, or an attorney have more options afforded them. Loan modification, debt negotiation, consolidation, mediation, and arbitration are all preferable ways to avoid foreclosure than bankruptcy. The stress levels and pressures are also drastically reduced when people seek help at early stages of accumulating debt.
Bankruptcy
Filing bankruptcy should always be a last resort for Foreclosure Prevention in Wellington FL. Depending on the Chapter of bankruptcy filed, it is typically possible to keep the house and be protected from creditors. It does come at a high cost though, so needs to be considered when all else has failed. A bankruptcy filing stays on a credit report for seven to ten years and inhibits loans or other types of financing during that time.
