Avoid buying a larger home than you can afford. Take into account all expenses of homeownership such as:

• Higher Taxes, Utilities and Maintenance Costs



• When refinancing, make sure that your property taxes will be included in your mortgage payment.



• Avoid Creative financing whether for purchasing or refinancing a home.



• Attend a homebuyers/homeowners education program which assists with budgeting and money management, down payment assistance, home maintenance and repair, and real estate taxes and insurance.

Think about it. Typically, the lenders do not want your home. They want your house payments. Foreclosure proceedings are court actions involving lawyer’s fees. They cost lenders a lot of money (as much as $50,000 for one proceeding), so often it is in everyone’s interest to agree on new terms that modify the current mortgage.

If possible, try to go right to the mortgage company’s “Loss Mitigation” department (it may be called the “Foreclosure Prevention” department) if the mortgage terms become unmanageable. Ask them to send a “work-out” packet to update your financial information, including income, expenses, and other debts. If you qualify, several options may be made available.

There are five HUD Approved counseling agencies in Franklin County: Consumer Credit Counseling Services, Columbus Housing Partnership, Columbus Urban League, Homes on the Hill, and the Mid Ohio Regional Planning Commission. They are a valuable resource for information on services and programs.