Foreclosure Advice: The Best Thing to Do If You Have Bad Credit, No Equity & No Money

Many homeowners these days are faced with foreclosure. Not only that, many don’t have any money to put their hands on, no equity in their homes and bad credit. If this sounds like you, here’s some concrete advice about how to get back on your feet.

Foreclosure Advice on How to Decide If You Should Stay In Your Home

Because foreclosure is an emotional process, it can be hard to make sound financial decisions. But, in order to see your way out of this mess, you must, must, must remove the emotion from it and decide if trying to prevent foreclosure is even a good idea.

Sometimes, foreclosure can be a blessing in disguise – it’s all in how you look at it. If you don’t qualify for a mortgage modification; are under water and can’t refinance; and have bad credit, you may need to seriously consider foreclosure or some other way to get rid of your home, (eg, deed in lieu of foreclosure or a short sale).

Think of it as a fresh start. You will be able to purchase another home if you want. It will take time, but just because you are foreclosed on does not mean that you will never be able to buy another home.

Foreclosure Advice If You Want to Try to Stay in Your Home

If you have bad credit, no equity in your home and no money, your very best option is to try to work out a loan modification with your existing lender. Why? Because they have the most to lose if you walk away. With bad credit, no other institution is going to give you a loan – so that’s out of the question.

If you have no money, you can’t dig yourself out of a hole – so trying to buy something cheaper right now is out of the question.

And, if you have no equity in your home, you can’t refinance – so that’s not an option.

If you’re hell bent on staying in your home, truly the only hope you have is to try to work out a loan modification with your existing lender. There are government programs set up to help homeowners stop foreclosure that can help.

But again, if you find that you are ineligible, your best option is to hound your existing lender into giving you a loan modification, a forbearance, etc.

The only way to dig out from under a difficult situation like home foreclosure is to face the facts. Losing your home to foreclosure is NOT the end of the world; even though it may seem like it. You will recover and thrive financially again. Keep this in mind during these extremely difficult times.

We hope this post home foreclsoure has shed some light on your options so you can make some concrete decisions and move on with your life.

Get info on 32 ways to stop foreclosure: Discover what banks won’t tell you & investors don’t want you to know.

P.S.: Buy cheap foreclosures and have a $45/month mortgage — really!

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Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.