The housing market has seen better days, and sub-prime mortgage is now a household name with negative connotations, there are a few shiny spots in the market but to the thousands who face a home foreclosure the whole scene is dismal.

There are a few simple things that one can do to avoid the entire foreclosure scenario. If you think that you may be at risk or facing a foreclosure on your home you should look for refinancing options with your current lender and/or look to other lenders that may be able to help. Whatever you do don’t wait to open a dialogue with your lender; your lender may have programs available that are specific to your situation, you should work with your bank to see if they offer assistance, or even re-financing to 50 yr. mortgages that may reduce payment amounts.

If your finances are not stable and you find that making your monthly mortgage payment is difficult you should be proactive and protect yourself and your family. The bank does not want to foreclose on your house, especially in a less than hot real estate market. In most home foreclosures a bank will actually lose money because house values have fallen, or they would have to hire contractors to finish the remodeling project that you didn’t have a chance to finish. If a bank has to put your house on the market they may need to wait several months or longer before it sells and the interest payments that you would have been making otherwise would be lost, so you see foreclosure is a lose-lose situation for everyone.

A few simple things that can help avoid foreclosure:

1. Stop using credit cards and pay down high interest debt. Eliminating high interest debt frees up cash for savings and putting towards principle.
2. Don’t buy a home beyond or at the top end of your price range. If you can’t really afford or just afford it you could be walking into a financial pitfall if something unexpected happens like losing your job or an unseen medical absence from work.
3. Have a savings account with at least 6 months expenses saved. If you can afford it put away more in a rainy day fund, the larger the buffer to fall back on may keep you out of foreclosure.
4. Maintain your home - an increase in equity may help you if you want to refinance. If you build equity in your home you can borrow against it, and this will reduce the risk in investment by a lender, helping you secure a new mortgage. If you have to sell a well maintained home will sell faster if you decide that is the best route.
5. eep your finances secure, including your 401K - Diversified investments can help insulate you from bubbles like the .com bomb and other stock market woes.

Remember, the smartest decision you can make is one that you make because you want to not because you have to.

First Rate Funding is a mortgage broker that offers a personal approach to the mortgage process proudly serving the Albany, NY area, with offices in Albany and Saratoga Springs.

If you have any questions about the mortgage process, or are looking for a mortgage or mortgage refinance including: FHA loans, First Time Home Buyer Programs, VA, Conventional, Conforming or a Non-Conforming loan, contact sales manager Ken Crichlow at 518-452-4700 or by email kcrichlow@firstratefunding.net. Visit the First Rate Funding website at: http://firstratefunding.net.