As the economy continues to sour many Senior Citizens are finding themselves facing foreclosure. A job loss and/or medical debt is usually the main reason homeowners face foreclosure ; but in the case of Senior Citizens, devaluation of their retirement savings is leaving many short on cash and without enough income to even pay the mortgage. The biggest symptoms of a pending foreclosure is reduction of income, increased use of credit for everyday items such as groceries, utility bills and using credit cards to purchase items that you would usually buy with cash and late/missed mortgage payments.
If your financial life is showing symptoms of a pending foreclosure, here are a few things you may consider doing:
- Thoroughly review your financial situation. This means looking all of your finances -- income, budget, assets and debts. You might want to consider working with a certified accountant or financial planner to analyze your finances to assess the true state of things.
- Consider requesting an affordable mortgage modification. There are several mortgage modification programs available; but make that the modification solves your financial problems before agreeing to any new terms. Visit www.financialstability.gov to learn more about mortgage modification programs and other programs designed to help homeowners facing foreclosure.
- Consider bankruptcy. If you have large amounts of outstanding debt and are facing foreclosure you may want to consider your Chapter 7 and Chapter 13 bankruptcy options. Filing Bankruptcy can help you either discharge your debts or create an affordable repayment plan that might be able to help you keep your home.